Recent developments in the car finance industry have brought a significant revelation—Lloyds Banking Group has set aside £1.2 billion to cover potential compensation claims for mis-sold car finance agreements. This move highlights the growing scrutiny over historical finance deals, where customers may have been charged excessive or undisclosed commissions. If you’ve ever taken out car finance, now is the time to check whether you could be eligible for compensation.
What's Included?
Why Is Lloyds Setting Aside £1.2B?
The Financial Conduct Authority (FCA) has been investigating the car finance industry due to concerns that many customers were misled or not given fair terms on their agreements. A key issue is the discretionary commission model, where lenders allowed brokers or dealerships to adjust interest rates—often leading to higher costs for consumers without transparent disclosure.
Lloyds Banking Group, which includes Black Horse and other motor finance brands, is one of the biggest players in the UK car finance market. Their decision to allocate £1.2 billion suggests that a large number of customers may have been affected.
How Do You Know If You Were Mis-Sold Car Finance?
You might have a claim if:
✅ You were not informed that a broker or dealership was earning a commission on your finance deal.
✅ You were charged a higher interest rate without clear justification.
✅ You were not given full disclosure of all terms and conditions at the time of signing.
✅ You feel that the finance agreement was not in your best financial interest.
How to Find Your Old Car Finance Agreement
If you suspect you were mis-sold car finance, the first step is to locate your old finance agreement. Many people worry they no longer have these documents, but there are several ways to retrieve them.
We’ve created a helpful guide to walk you through the process: How to Find Historical Car Finance Agreements for a Mis-Sold Car Finance Claim.
This guide will show you how to: 🔎 Search your emails and online banking for lender details.
📞 Contact your lender directly for copies of agreements.
📋 Use a Subject Access Request (SAR) to retrieve your finance records.
📊 Check your credit report to identify past finance providers.
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Don’t delay you could be owed £’000’s
What Should You Do Next?
If you believe you were mis-sold car finance, you can take the following steps: 1️⃣ Gather evidence – Find your agreement and any supporting documents.
2️⃣ Assess your case – Compare your deal against FCA guidelines on fair lending.
3️⃣ Submit a complaint – Contact your lender with a formal complaint regarding mis-selling.
4️⃣ Escalate if needed – If your lender refuses your claim, you can escalate to the Financial Ombudsman Service for further review.
Act Now – You May Be Entitled to Compensation
With Lloyds setting aside such a large sum, it’s clear that car finance mis-selling has been a widespread issue. If you had car finance in the past, now is the time to check if you were affected and take action.
💡 Want to learn more? Read our guide on finding your old finance agreements and start your claim today: Click Here.
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Have you had a car, motorbike, van, motorhome or caravan on finance before 2021?
Don’t delay you could be owed £’000’s
