Why Are People Making Black Horse Claims?
The FCA has now confirmed a motor finance redress scheme after finding that many lenders did not properly tell customers important information about their agreements. This can include commission arrangements between the lender and broker, such as DCAs, high commission models, and some contractual ties.
If you used Black Horse finance between 6th April 2007 and 1st November 2024, your agreement may fall within scope. However, not every agreement will qualify, and some arrangements are excluded.
What Is a Black Horse Car Finance Claim?
A Black Horse car finance claim relates to motor finance that may have been mis-sold because key information was not explained properly. That can include commission arrangements, unclear interest charges, or poor disclosure of how the finance worked. If this affected your PCP or HP agreement, you may be able to claim compensation.
Lloyds Banking Group’s Provision
The scale of the issue is significant. Black Horse is part of Lloyds Banking Group, which has reportedly set aside £2 billion for potential compensation. Wider industry cost estimates also reached £8.2 billion to £9.7 billion during the FCA’s consultation on the proposed scheme. The issue has also drawn political attention, which shows how important it has become for lenders, regulators and government alike.
Who Could Qualify for a Black Horse Car Finance Claim?
You may be able to claim if you used Black Horse finance for a car, motorbike, van or campervan between 6th April 2007 and 1st November 2024. This includes PCP and HP agreements.
Your agreement may fall within scope if commission was involved and not explained clearly. It may also qualify if the interest rate was not justified or key terms were unclear.
Not every agreement will qualify. The FCA says some cases are outside scope, including some low-commission deals, 0% APR agreements, and some visible lender-manufacturer-dealer arrangements.
Discretionary Commission Arrangements (DCAs) in Black Horse Agreements
Car Claim Specialists claim history shows that 90% of Black Horse agreements reviewed involved DCAs. Discretionary Commission Arrangements (DCAs) allowed a broker or dealer to adjust the interest rate on a finance deal. When the rate went up, commission could go up too. The FCA says these arrangements can fall within scope if customers were not given the right information.
If your Black Horse agreement involved a DCA, or another commission arrangement that was not explained clearly, you may be able to make a claim.
How Much Compensation Could I Get?
Compensation varies by agreement. It should reflect any extra interest or loss linked to commission that was not explained properly. Across the wider scheme, the FCA estimates average payouts of about £830 per agreement. However, a Black Horse case could be worth more or less.
For a broader look at payout timing and the wider market position, read our latest car finance compensation update.
How to Start a Black Horse Car Finance Claim
There are two main ways to start a Black Horse car finance claim.
You can either complain directly to Black Horse yourself or get support with the process. A good place to start is our short survey. It only takes a few minutes to find your lenders and helps you understand whether your agreement may fall within scope.
When should you hear from Black Horse?
For agreements that started between 1st April 2014 and 1st November 2024, anyone who complains before 30th June 2026 should hear whether they are owed money by 30th September 2026.
Customers with agreements that started between 6th April 2007 and 31st March 2014 should hear by 30th November 2026, as long as they complain before 31st August 2026.
Lenders must still contact eligible customers who do not complain within 6 months of the scheme starting. For later agreements, that means by 30th December 2026. For earlier agreements, that means by 28th February 2027.
What If My Black Horse Claim Is Rejected?
If Black Horse rejects your complaint, you may still be able to take it to the Financial Ombudsman Service (FOS). This is a free, independent service. If you receive a final response and you are unhappy with it, make sure you contact the Ombudsman by the date given in that response.
Start Your Black Horse Finance Claim Today
If you think you were mis-sold by Black Horse, now is a good time to act. The FCA has confirmed the scheme, and there are clear deadlines for complaints. Check your eligibility and start your Black Horse finance claim today.
