Were you one of the many buyers who financed a Frankia motorhome between 6 April 2007 and 1 November 2024? If so, your finance agreement may have been affected by the Financial Conduct Authority (FCA) investigation into
discretionary commission arrangements in the motor finance industry. This investigation revealed significant mis-selling issues that could affect thousands of Frankia owners across the UK.
How Frankia Motorhomes Were Financed
Frankia motorhomes were commonly sold using
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements during the period under scrutiny by the FCA. Popular lenders for Frankia finance included
Black Horse,
Close Brothers Motor Finance,
Lombard, and Billing Finance. PCP agreements typically offered lower monthly payments with a final balloon payment due at the end of the term, while HP agreements required full repayment over the agreed term without a balloon payment.
The FCA Motor Finance Investigation
The FCA investigation uncovered widespread mis-selling practices related to discretionary commission arrangements between lenders and motor dealerships. These practices potentially led to inflated finance charges for consumers, resulting in significant financial harm. According to the FCA’s estimates, 12.1 million eligible agreements (FCA, March 2026) were affected by these issues, with a total of £7.5 billion (FCA estimate) in mis-sold agreements and an average refund amount of £829 (FCA estimate).
How to Check Your Agreement Any PCP or HP contract for a Frankia motorhome that was initiated between 6 April 2007 and 1 November 2024 may be affected by these findings. review the terms of your finance agreement to see if there were any unusual fees or commissions that could indicate mis-selling practices.
If you believe your Frankia motorhome finance agreement was mis-sold, you can complain directly to your lender without incurring any costs. Common lenders such as Black Horse, Close Brothers Motor Finance, Lombard, and Billing Finance all have dedicated complaint procedures that are designed to address customer concerns efficiently. You do not need a
claims management company to handle your complaint; these companies often charge fees for services that you can perform yourself at no cost.
Sources and References
- Financial Conduct Authority (FCA). (2024). Motor Finance Investigation.
- Office for National Statistics (ONS) Census 2021. (2021).
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.
FCA Compensation: FCA Scheme Figures
The FCA confirmed on 30 March 2026 that 12.1 million motor finance agreements are covered by the FCA redress scheme. The FCA-estimated scheme average of £829 per eligible agreement per agreement, with a total of £7.5 billion set aside for consumers. The scheme covers PCP and HP agreements entered into between 6 April 2007 and 1 November 2024.
Two separate schemes apply: post-2014 agreements (implement by 30 June 2026) and pre-2014 agreements (implement by 31 August 2026). The final deadline to complain is 31 August 2027. You can complain to your lender directly for free. You do not need a claims management company.