Black Horse Finance Claim

No Win, No Fee Claims

If you’re a UK resident and took out a Personal Contract Purchase finance agreement with Black Horse Financial Services before 28 January 2021 to buy a new or used car, then you may be able to make a claim for compensation for undisclosed commission.

If an undisclosed commission was charged on your car finance deal, your agreement may have been subject to inflated interest rates, meaning your monthly payment was higher than necessary throughout the agreement’s duration. Let our PCP car claims experts examine your claim today.

The media focuses a lot on individual car manufacturers when discussing discretionary commission arrangements (DCAs). Car dealerships either use their own in-house companies to service car finance deals or sometimes third-party finance companies, like Black Horse Car Finance, also called Black Horse Financial Services. Black Horse is the finance arm of the Lloyds Banking Group and the largest motor finance provider in the UK. Financial analysts at RBC Capital Markets estimate the redress bill could come to £2.5bn for Lloyds by the time they reach the end of this process.

Let us put you in touch with the UK’s leading PCP compensation claims solicitors to help you apply for compensation on your Black Horse car finance agreement. It’s on a strict no win no fee basis, so you won’t pay a penny unless you receive compensation, and it’s free to check!

Why Choose PCP Claims UK

We will put you in touch with the UK’s top compensation claims solicitors to help you recover compensation for higher interest rates and inflated monthly repayments from dealers and finance companies who didn’t give you all the facts at the start of the agreement. It’s strictly no win, no fee, and it’s completely free to check.

Claim £1000s – Receive compensation for your mis-sold PCP finance agreement.
Work with the pros – We team you up with the UK’s leading PCP claim solicitors.
No win, no fee – Our no win no fee basis means no financial risk to you.
60 second form – Fill in our form to find out if you have a claim.
Zero risk – We only share your data with solicitors if you’ll qualify.

The Investigation By The Financial Conduct Authority (FCA)

Before the FCA banned the practice in 2021, banks and finance companies allowed car dealers to set their own interest rates on car finance; this was called discretionary commission arrangements. Salespeople could undercut banking rates to offer customers a better deal but could also exceed them and gain a larger commission from the finance company or bank.

The FCA became interested when two consumer complaints were upheld by the Financial Ombudsman Service (FOS). One was against Black Horse, where the customer paid an APR of 10.5%, and the other was against Clydesdale, then owned by Barclays, where the customer paid an APR of 8.9%. Higher interest rates were often disguised in the APR. The Ombudsman commented that both banks, in these cases, would have offered much lower rates to the consumer, so there was an inherent conflict of interest between the consumer and the brokers in these car finance agreements.

What Should Black Horse Customers Do Next?

As more than 80% of car finance is provided via a Personal Contract Purchase or PCP agreement (note: this investigation doesn’t extend to hire purchase agreements outside of PCP agreements), if you are or have been a customer of Black Horse Finance, then you should start by looking at the details of your Black Horse agreement. However, if there was a discretionary commission arrangement in place, then you probably won’t be able to see this in the document, and contacting the car dealer won’t help much either.

Are you unsure about your finance agreement? Read on or get in touch with our experienced team today. We’ll connect you with a law firm that works on a No-Win, No-Fee basis, so it won’t cost you anything for us to conduct proper checks on your PCP finance agreement and see if there was a hidden discretionary commission arrangement.

How To Find Out If You Are Eligible For Compensation On Mis-Sold Black Horse Car Finance

To claim compensation, your car finance agreement must pre-date 28 January 2021, when the FCA banned discretionary commission arrangements.

A valid claim will depend on whether you were informed about a DCA on your Black Horse car finance package. Mis-selling hinges on whether these arrangements were revealed to customers as part of a complete financial picture. If you didn’t know about a DCA, then the FCA essentially class this as irresponsible lending, and you could be owed compensation.

What Happens Next For Your Black Horse Finance Claim?

The FCA was going to announce the results of their investigation in September 2024 but recently extended the deadline to May 2025 because of the volume of complaints and the complexity of the inquiry. The FCA is also waiting for the outcome of a case involving Barclays Finance, which has gone to the Court of Appeal. However, Black Horse Finance has already been told to start setting aside large reserves to compensate affected consumers.

The FCA has extended the deadline for finance providers to provide a final response to complaints to December 2025. Even though finance providers do not have to formally respond to complaints, if you had a PCP agreement taken out before 28 January 2021, you should still register your car finance claim now.

How Much Compensation Could I Get?

Vehicles with PCP agreements and discretionary commission arrangements have cost consumers thousands throughout their loan with inflated monthly payments based on higher interest rates. The average payout won’t depend on how much commission the broker received when you bought your new car but on whether the interest rate was raised because of hidden commission and, if so, by how much. It is likely Black Horse will need to repay the difference between the interest rate you should have paid and the rate that was applied to your car finance deal, which led to a higher monthly payment.

According to an FCA review in 2019, the average uplift per consumer was £1,100 but consumers with high-value cars or extended finance agreements may find they receive considerably more in compensation claims. Some industry experts have predicted a per-customer average of £1,600. Any refund will also receive interest at the statutory rate of 8%.

Start A Black Horse PCP Car Finance Claim Today

Even though the FCA is still conducting its review, you should register your claim without delay if you think there was a discretionary commission on your car loan.

Start a free claim with our expert solicitors. That’s right, our service is completely free of charge and we only take a fee if you are successful and win compensation.

Make Appointment

Get in contact and let us know about your potential claim.

Support Your Claim

Provide any available evidence/documentation relating to your claim.

Allow Checks

Allow checks to be made to investigate whether you have a valid claim.

Leave It To Us

You’ll be referred to legal experts who will handle your claim and look to secure the PCP finance compensation you deserve.

Why Use Us?

Fast results – We work with only the best PCP claim solicitors in the country, who all prioritise your time and compensation above all else.
No upfront risk – You don’t pay a penny for legal services unless you win, and only then will a small % of your compensation be deducted for their work.
Industry leaders – When you work with us, you work with claim experts who have connections to leading PCP claim solicitors.

Black Horse Finance Claims FAQs

Our most common PCP claim questions about Black Horse Finance mis-selling are answered for you below.

Which Lenders Are Involved In Mis-Selling Claims?

Black Horse is the largest provider of car finance for new cars in the UK, so it is probably at the head of the queue in terms of the volume of claims complaints. Also included are Close Brothers, Barclays Partner Finance, Stellantis Financial Services, and Santander. In-house financial providers linked to individual motor manufacturers are also subject to this investigation.

How Do I Know If I Have Been Mis-Sold?

You won't receive a final decision on your claim at this stage. All you can establish is, first, whether you have a PCP agreement or agreements within the correct time frame and, second, whether there was a DCA in place, which you didn't know about. What happens next is forming part of the FCA investigation. If they find evidence of mis-selling and irresponsible lending, then part of their remit is to devise a fair and consistent compensation process for consumers.

I Have Already Contacted Black Horse About A DCA But Have Not Received An Answer. Can I Take My Case To The Financial Ombudsman Service?

If you have already registered your complaint with Black Horse and just received holding emails then it's likely they haven't yet confirmed that there was a DCA in place on the loan for your new vehicle. New complaints are being lodged every day, and with the lion's share of the market, Black Horse has been inundated with customers making complaints. They seem to be taking months even to answer a basic SAR - Subject Access Request - for a consumer to find out if there was a DCA on their loan agreement. Once this has been confirmed, you will have no alternative but to wait until the next announcement from the FCA. The FCA has given lenders until December 2025 to issue a final response to a customer complaint. You can only take your case to the Financial Ombudsman Service once you have received a final response and a refund if you are unhappy with it.