picture of cars on a dealer forecourt

How to bring a Black Horse Finance claim

Lloyds Banking Group, which provides consumers with car, motorbike and caravan finance through its Black Horse Finance brand, has admitted setting aside a staggering £450 million for paying potential regulatory fines and compensation to victims of car finance mis-selling.

Let’s explore how you can bring a claim if you’ve had car finance with Black Horse.

How can I claim compensation from Black Horse?

The first thing to do is to understand if you may have been mis-sold, which you can discover in minutes using our free, no-obligation check.

Check your Black Horse Finance claim with LawPlus Solicitors now.

If we believe you’re owed compensation, you can instruct us to pursue your claim on a no-win, no-fee basis.

How have car finance deals been mis-sold?

Estimates suggest that up to 90% of all new car purchases – plus a significant volume of used cars – are funded with some form of financing. By far the most common form of financing is personal contract purchase (PCP), with hire purchase (HP) and other options like leasing lagging behind.

As with any credit agreement, your PCP deal would have included an interest rate at which you would repay the money you’ve borrowed to finance the car.

However, before 28th January 2021, firms were permitted to use discretionary commission arrangements (DCAs) to increase their commission, which meant you paid a higher interest rate and made higher repayments.

This constitutes mis-selling if the finance broker who arranged your deal – usually a representative in the car dealership – did not disclose their commission or tell you that they’d artificially inflated your interest rate.

How will I know if my Black Horse finance deal was mis-sold?

You probably won’t. Unfortunately, this is often the case with financial mis-selling, but there are some indicators that may help you work out if it happened to you.

If you’ve had car finance with Black Horse, think back to when you bought the car and arranged your PCP agreement with the car dealer. After choosing your vehicle and likely taking it for a test drive, you’d have been sitting at a desk in the showroom or maybe even in the showroom manager’s office having a cup of coffee.

If any of these scenarios ring true, there’s a chance your car finance was mis-sold:

  • The person who arranged your finance – most likely the car dealer – told you the finance deal they were offering you was the best available or only offered you a single deal rather than offering several options or encouraging you to find a deal that suits you. They probably used a phrase like “Your interest rate will be X%.”
  • The person arranging your vehicle finance didn’t tell you they’d earn a commission from selling you the deal.
  • The person arranging your finance agreement didn’t tell you how much commission they’d earn from the deal.

Many car finance claims based on any or all of the above three points succeed because:

  • The finance broker didn’t disclose that they would earn a commission.
  • You were effectively paying the commission, and your interest rate and repayments were higher than if the commission didn’t exist.
  • There is an assumption that if you had known about the commission and that you could potentially get a lower rate, you would have passed on the deal or tried to arrange financing for your vehicle by some other means.

Check your Black Horse Finance claim with LawPlus Solicitors now.

How much Black Horse Finance compensation could I get?

If Black Horse mis-sold your car finance deal, your compensation award will depend on several factors, including:

  • The price of the vehicle and the level of financing used. If you paid the cheapest possible deposit, the outstanding amount subject to interest would have been higher, meaning that any artificially increased interest rate would have had a more significant impact on your repayments.
  • The length of the agreement. The more repayments you made, the greater your overpayments would have been. In contrast, if your car dealer offered you a new vehicle after 12 – 18 months, and your new agreement didn’t include hidden commission, your overpayments may be relatively low – although you can still reclaim them!
  • How much you overpaid. This will largely depend on how much your interest rate was artificially increased, which would have directly contributed to your monthly car finance repayment.

Generally, your Black Horse Finance compensation payment should give you back at least every penny you unwittingly overspent.

While your compensation award will be unique to you based on the three variables above, LawPlus Solicitors clients are achieving an average payout of £1,500 per car finance agreement.

I have had car finance from Black Horse previously but don’t now. Can I make a claim?

Yes. You can bring a car finance mis-selling claim on both existing and previous car finance agreements if you paid hidden commissions.

Is Black Horse Finance the only car finance company affected?


What will likely come to be described as a significant scandal is far-reaching, affecting a broad range of lenders who offer finance solutions for both cars and other vehicles.

We’ve already looked at how affected consumers can claim car finance compensation from MotoNovo, and Barclays Partner Finance is among firms to have had a complaint against it upheld by the Financial Ombudsman Service (FOS), although as of July 2024, it is challenging the ruling via judicial review.

Elsewhere, the Financial Conduct Authority (FCA) has told lenders they must maintain “adequate financial resources at all times” to ensure they can cover car finance mis-selling complaints as the regulator continues to investigate the sector. The FCA also told Parliament in May 2024 that it was considering a formal redress scheme.

Start your Black Horse Finance claim with LawPlus Solicitors

If you’ve had vehicle finance from Black Horse in the last six years, our free online check will tell you if compensation is due.

Check your Black Horse Finance claim now, and let’s get your money back!

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