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Car Finance Compensation Calculator
You could be owed compensation if your car finance was involved in Discretionary Commission Arrangements (DCAs). The FCA scheme has an expected average payout of around £829. If you use a CMC for your claim, they may look to get you more than through the FCA scheme, as some experts claim the FCA scheme undervalues claims.
Our legal partners have achieved an average payout of £1,846.23 per car finance claim minus fees of 15-30% + vat. This figure is the average claim value per agreement of HD Law as of July 31st 2025. All clients will be litigated, hence the higher past average redress figure vs the FCA scheme expected figure of £829.
No Win, No Fee
You only pay a success fee if your claim is successful. Our claims partner's success fee is 15%–30% of the compensation you receive, plus VAT. If no offer is obtained, you will not be charged a success fee. You can read full details of our fees here. Cancellation fees may apply if you cancel or breach your agreement before the process is complete.
Black Horse Claims
A recent Financial Conduct Authority (FCA) investigation discovered widespread evidence of widespread mis-sold car finance. As one car dealer openly admits in a recent article, “frankly, we were getting away with murder. We weren’t treating customers fairly and were, in effect, charging them to earn us money.” Some lenders have also been guilty of approving loans that were unaffordable, especially in the subprime market.
Black Horse Car Finance is a financial services company based in the United Kingdom, specialising in providing car loans and financing solutions to consumers. It operates as a subsidiary of Lloyds Banking Group and offers a range of car finance products, including hire purchase agreements and personal contract purchase (PCP) plans. Customers can obtain financing for both new and used cars through Black Horse Car Finance. They work with various dealerships and partners across the UK.
In their latest numbers, the Financial Ombudsman upheld 26% of complaints against Black Horse Ltd.
If you believe you have had a mis-sold or unaffordable loan from Black Horse, then we can help you get compensation. Start your claim today!
Martin Lewis
“£13 billion could be paid out over car mis-selling.” “This is enormous... we're talking about systematic, mass scale mis-selling” [1]
BBC
"Motorists who bought cars on finance could share in billions" [2]
MoneySavingExpert
“This could lead to billions of pounds of overcharged interest paid back to millions of people.” [3]
Was My Black Horse Loan Mis-sold?
Like all loans, your car finance was mis-sold if the loan was unaffordable or the lender did not perform proper affordability checks. If any of the below statements describe your experience with Black Horse, you could also be eligible to claim compensation. Click below to find out if you are unsure if you were affected by any of these, and claims professionals will investigate:
The payments were unaffordable, or no finance credit checks were carried out
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The car salesperson did not fully explain that they would receive a commission on the sale of the car
The lender/bank did not fully explain the commission
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The salesperson skipped through the car finance agreement Terms & Conditions
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The customer felt pressured into the finance deal and was not given a range of options, including an explanation of all of the differences in each type of product
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The salesperson did not make it clear who was financially responsible for the repairs to the vehicle.
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The salesperson did not offer the best interest rate available to you?
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The salesperson did not present to you, with complete transparency, the interest rates charged for all loan options and how they may differ.
Don’t worry if you can’t find the agreement or remember who the lender or dealership was. You just need the name of the company you made the payments to. You should be able to find this information on your old bank statements.
Be aware, there are statutory deadlines, known as limitation periods, that apply to mis-selling claims.
FAQs
Why Use The Claims Guide
Maximise potential redress: Our partner law firm can assess whether taking your case to court could lead to a higher settlement. £1,846.23 (minus fees of up to 36%) is the average redress achieved by our partner law firm HD law. While many other law firms simply use the FCA scheme; our lawyers always seek to get the most compensation for customers.
Expertise with complex claims: Our specialist partners understand the nuances of car finance compensation and handle the paperwork, evidence gathering and negotiations for you, reducing stress and guesswork.
Multiple agreements managed together: If you’ve had several hire‑purchase or PCP loans, ensure every eligible agreement is included, so you don’t miss out on compensation.
Stay informed: Experts will monitor FCA updates and court rulings, keeping your claim compliant and on track while you focus on other things.
Latest update on when car finance claims are being paid out
Based on the latest FCA update, Lenders are expected to begin processing claims after an implementation period ending 30 June 2026 (for newer agreements) or 31 August 2026 (for older ones), and will then have 3 months to tell customers if they are owed compensation. If you haven’t complained, lenders will only contact you if you’re likely to be eligible, and you’ll still have until 31 August 2027 to make a claim. Timings may change due to ongoing legal developments.
However, recent legal challenges to the Financial Conduct Authority scheme could delay compensation payments. Several groups, including lenders and a consumer organisation, are disputing how the scheme is designed, particularly the level of compensation.
How long do Car Finance claims normally take?
The rules state that a lender has 8 weeks to reply to a complaint; however, sometimes they go over this deadline. If the lender concedes they were at fault, they will pay out shortly after. If the complaint needs to go to the Financial Ombudsman because the car finance lender is disputing it, the case could take anywhere between 12 to 18 months to conclude. Some people are lucky and get a claim accepted and their refund paid after only a couple of months. Others take over a year.
Lenders currently have an extension for hidden commissions claims, granted by the FCA, so these may take longer than usual.
How much could I get refunded from a car finance claim?
£1,846.23 is the average redress achieved for each agreement by our partner law firm, HD Law, up to July 31st 2025. As the average claimant had two agreements, the average redress per claimant was over £3,600, but they were charged fees of up to 36%. All clients who sign up through our form will be litigated, hence the higher average past redress figure than expected with the FCA scheme.
How Much Is Expected From The FCA Scheme
The Financial Conduct Authority (FCA) highlighted in their report, "Our Work on Motor Finance – Final Findings" (March 2019), that a typical motor finance agreement of £10,000 under a Discretionary Commission Arrangement (DCA) led to consumers being overcharged by around £1,100 per agreement.
This figure was revised to £950 in August 2025, and then to £700 when they formally announced their proposed scheme in October 2025. In their update on 30th March 2026, the FCA increased their estimate again to £829. Some industry insiders believe this figure is too low, and some CMCs will likely pursue a higher amount of redress for their customers.
How many people were affected by Discretionary Commission Arrangements?
The FCA previously told MPs that there were 14.6 million discretionary commission
arrangement agreements between 2007 and 2020. That is over half (around 56.4%) of all UK car finance agreements in that time period.
In terms of hidden commissions in general, this would add to the number of borrowers affected.
How do I know if I can claim?
Mis-selling often occurs when details of the agreement aren’t clearly explained or proper affordability checks aren’t conducted. In terms of car finance, it can also be because the broker was incentivised by DCAs. If any apply to you, you can file a complaint. Whether your agreement is ongoing or paid off, you can still claim. To find out if you can claim, click the blue button below.
Can I Claim For A Deceased Relative
Yes. If you are the primary beneficiary, then you can claim for a deceased relative. When filling in the form, you may have to put their details in to find the agreement, but put your own contact details in. When our partner law firm contacts you, just explain the situation.
How much will I receive if my Unaffordable Lending Claim is successful?
If you successfully claim a refund from a lender, you can claim back the interest and charges on your loans, plus 8% statutory interest. For more information on how this is calculated, click here.
How much will I receive if my Hidden Commissions Claim is successful?
If you successfully claim a refund for hidden commissions, you can generally claim back the commission paid to the broker, plus, typically, 8% statutory interest. In some more serious cases, you may receive more. These circumstances are explained here.
How much will I be charged?
All claims on this website are on a no-win no no-fee basis, meaning you won't pay a thing unless you win compensation. You will have the right to cancel the agreement within 14 days with no penalty. If you cancel after 14 days, you may be charged for work done up until the time of cancellation.
We use multiple partners to ensure we are able to offer claims against all types of lenders, from whom we receive payments. The exact fee structure will depend on which lender you are claiming against, as this decides which of our partners is most suitable for your claim. A breakdown of our fee structure can be seen here. The fees for Diesel Emissions Claims are calculated differently due to it being a group action lawsuit.
How Do I Submit My Claim?
Simply complete the online application form by clicking on the blue button below. This is the first stage of your complaint to your lender, where you could receive compensation. For more information on the process, please click here.