Why Are People Making Black Horse Claims?
The FCA has now confirmed a motor finance redress scheme for some agreements where commission may not have been explained clearly.
This can include commission arrangements between the lender and broker, such as DCAs, high commission models, and some contractual ties.
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
Black Horse is part of Lloyds Banking Group. Lloyds has set aside money for potential motor finance compensation, which shows the scale of the issue.
However, not every Black Horse agreement will qualify. Each case will depend on the finance agreement, commission model, and what the customer was told.
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. Provide a few personal details, and we can search for your past and present lenders. This can help you check whether your agreement may fall within scope.
When should you hear from Black Horse?
The final timetable is now uncertain because the FCA scheme faces a legal challenge. The FCA says this will delay payouts, and it will confirm the scheme timeline when it can.
However, customers who complain before the scheme starts may have their case assessed sooner.
Lenders must still contact eligible customers who do not complain within 6 months of the scheme starting.
Can you complain to Black Horse directly?
Yes. You can complain to Black Horse directly for free. You do not need to use a claims management company.
Black Horse says customers should provide their contact details, agreement number or vehicle registration, complaint details, and any supporting paperwork.
However, some drivers prefer help because they no longer have their paperwork or cannot remember their agreement details.
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 check your agreement.
The FCA scheme could affect some Black Horse PCP and HP agreements. However, the final timetable is now uncertain.
Enter a few personal details, and we can search for your past and present car finance agreements and lenders.
