The Lunar Pinnacle motorhome was commonly sold on Personal Contract Purchase (PCP) and Hire Purchase (HP) finance agreements during the Financial Conduct Authority’s (FCA) investigation period from 6 April 2007 to 1 November 2024. This investigation uncovered significant issues with discretionary commission arrangements that affected many consumers, including those who financed their Lunar Pinnacle motorhomes through various lenders.
How the Lunar Pinnacle was Typically Financed
The Lunar Pinnacle motorhome is a popular choice for those seeking an adventurous lifestyle, often purchased on finance terms ranging from £40,000 to £80,000. Commonly used PCP and HP agreements typically span 48 to 120 months, with balloon payments at the end of the term. Major lenders such as Black Horse, Close Brothers Motor Finance, Lombard, and Billing Finance frequently provided finance for these motorhomes.
PCP agreements often require a deposit payment upfront, followed by regular monthly instalments over the specified period. The final balloon payment is typically due at the end of the agreement, which can be substantial given the high value of the Lunar Pinnacle motorhome. HP agreements, on the other hand, usually involve paying off the full loan amount in equal instalments without a final balloon payment.
The FCA Motor Finance Investigation
The FCA’s investigation into discretionary commission arrangements revealed that many finance companies were offering incentives to dealers and brokers based on the finance agreements they secured for customers. These discretionary commissions could influence how deals were structured, potentially leading to higher costs for consumers. The investigation found that 12.1 million eligible agreements (FCA, March 2026) across various vehicle types were affected by these practices, with an estimated total of £7.5 billion (FCA, March 2026) in overcharges and a per-agreement average of £829 (FCA estimate).
The FCA’s court ruling clarified that lenders who engaged in such practices could be required to compensate consumers for any financial harm caused by inappropriate commission arrangements.
How to Check Your Agreement Key indicators include:
- Relevant Dates: The agreement must have been made between 6 April 2007 and 1 November 2024.
- Discretionary Commission Arrangements (DCA): These arrangements can be identified by looking for clauses or references that mention additional payments to intermediaries based on the finance deal secured.
If your agreement includes these elements, you should consider reviewing it further with a professional advisor or contacting your lender directly.
You do not need a claims management company to complain about your Lunar Pinnacle motorhome finance agreement. Common lenders like Black Horse, Close Brothers Motor Finance, Lombard, and Billing Finance provide free internal complaint procedures that can be initiated by contacting their customer service departments.
To start the process, gather all relevant documents related to your finance agreement, including the original contract and any correspondence with your lender. Submit a formal written complaint outlining the issues you have identified, such as inappropriate commission arrangements or hidden fees. Your lender is obligated to review your complaint and provide a fair resolution.
Towed caravans are NOT covered by the FCA motor finance scheme. Only self-propelled motorhomes with their own engine and drivetrain are in scope for the FCA investigation.
Sources and References
- Financial Conduct Authority (FCA). "Discretionary Commission Arrangements: Investigation Findings." 2024.
- Office for National Statistics (ONS) Census 2021.