Which lenders are affected by car finance mis-selling?
Which lenders are in scope?
The FCA's proposed Consumer Redress Scheme applies to all regulated motor finance lenders that used discretionary commission arrangements (DCAs) between 6 April 2007 and 1 November 2024. This covers the vast majority of car finance providers operating in the UK during that period.
Major lenders potentially affected
Some of the largest car finance lenders in the UK include:
- Black Horse (Lloyds Banking Group) — one of the UK's biggest motor finance providers
- Close Brothers Motor Finance — a major independent lender
- MotoNovo Finance — widely used by independent dealerships
- Santander Consumer Finance — the consumer finance arm of Santander UK
- Barclays Partner Finance — Barclays' point-of-sale finance division
- Alphera Financial Services (BMW Group) — finances BMW, MINI, and other brands
- Volkswagen Financial Services — covers VW, Audi, SEAT, Skoda, and Porsche
- Toyota Financial Services — finances Toyota and Lexus vehicles
- Ford Credit (FCE Bank) — Ford's captive finance arm
- PSA Finance (now Stellantis) — covers Peugeot, Citroën, DS, Vauxhall, and Fiat
- Mercedes-Benz Financial Services — finances Mercedes-Benz and Smart vehicles
- Startline Motor Finance — a specialist sub-prime lender
- Zuto — an online motor finance broker
- V12 Vehicle Finance (Secure Trust Bank) — used by many independent dealers
- Mann Island Finance — a specialist motor finance provider
This is not an exhaustive list. Any regulated lender that offered motor finance with a DCA component during the relevant period may be covered by the scheme.
What about manufacturer finance?
Many people finance their cars through the manufacturer's own finance company — for example, BMW Financial Services or Ford Credit. These are regulated lenders and their agreements are included in the FCA's review.
The same commission structures applied whether you bought from a franchised dealership or an independent one. The key factor is whether the dealer had discretion to adjust your interest rate.
What if my lender no longer exists?
Some lenders have merged, rebranded, or ceased trading since 2007. This does not necessarily prevent you from claiming. The FCA's scheme requires successor firms to handle claims for agreements originally written by predecessor companies.
For example:
- GE Money Motor Finance was acquired by Hitachi Capital, which later became Novuna Consumer Finance
- Lombard and Lombard Direct are part of NatWest Group
- Capital One exited the UK motor finance market but may still owe redress for historic agreements
How do I find out which lender I used?
If you cannot remember which lender financed your car, our free tool can help. It searches credit reference agencies and vehicle registration databases to identify all car finance agreements linked to you — including the lender name, agreement type, and dates.
You do not need any paperwork. The search takes under 60 seconds and has no impact on your credit score.