Making PCP Finance Claims Against Major Lenders: Volkswagen, Black Horse, Motonovo & More

Expert guide on how to claim compensation for mis-sold PCP car finance from major lenders including Volkswagen Finance, Black Horse, and Motonovo following the FCA investigation into discretionary commission arrangements.

A £40 Billion Scandal: What You Need to Know

Millions of UK drivers may have been misled when financing their cars since 2007, and now, the tables are turning.

The Financial Conduct Authority (FCA) is investigating widespread mis-selling in the car finance sector, particularly focusing on Personal Contract Purchase (PCP) and Hire Purchase (HP) deals agreed since 2007. At the centre of the controversy are discretionary commission models, a now-banned practice that allowed dealers and brokers to set higher interest rates to earn more commission.

This practice, active in a car finance industry worth £40 billion, could mean you've been unfairly overcharged, often without knowing it.

What Happened with PCP Car Finance?

Many lenders, including major names like Black Horse, Volkswagen Finance, Motonovo, and Santander, allowed brokers to adjust interest rates on finance packages to consumers that believed were getting the best deals, resulting in inflated interest rates and leaving customers unaware of cheaper alternatives.

The more interest a customer paid, the more commission the broker earned.

The FCA outlawed these arrangements in January 2021, but thousands of drivers may have already suffered financial harm.

What Comes Next

The FCA's investigation gained traction following a landmark FOS ruling against Barclays in early 2024. The bank was found to have unfairly paid commissions to a broker. After its legal challenge was rejected, the door was opened to wider investigation across the industry.

In response, Lloyds Banking Group, which operates Black Horse, the UK's largest car finance provider, has allocated £1.2 billion for potential compensation payouts.

Market experts estimate:

• Lloyds could owe up to £2.5 billion
• Santander might face £1.1 billion in claims
• Barclays could pay out £350 million
• Close Brothers may owe £250 million

How Much Could You Claim?

If you financed a vehicle since 2007, you could be entitled to a significant refund. The compensation value depends on:

• The loan size
• The interest rate charged
• The term of the finance
• The size of the hidden commission

Act Now: Avoid Missing Out on Compensation

With potential backlogs appearing and statutory time limits possible after the FCA concludes its review, acting early is key.

1. Use our free checker to see if you qualify.
2. Submit a few basic details.
3. Let the legal team handle the rest.

This isn't just a technical finance issue, it's a matter of fairness. If you financed a car since 2007, especially through Black Horse, Volkswagen Finance, Motonovo, or similar firms, you may have been charged too much without knowing it.