Black Horse Finance Claim

Latest FCA Update

Black Horse Claims Affected by Scheme Suspension

Your Black Horse finance claim may be affected by the current partial suspension of the FCA's motor finance compensation scheme. The Upper Tribunal has suspended parts of the scheme while it considers legal challenges, with hearings scheduled for either 14 to 18 December 2026 or 16 to 26 February 2027. Black Horse must continue identifying relevant agreements, gathering information and progressing complaints as far as possible, but payouts aren't expected to begin until 2027. Black Horse should inform customers who have complained but aren't eligible under the scheme that they aren't owed compensation.

2 JULY 2026

Why Are Claims Being Made Against Black Horse?

Black Horse is one of the UK's major motor finance providers, having provided Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements to motorists. In some cases, Black Horse paid commission to the dealer or broker for arranging the finance agreement. The Financial Conduct Authority's (FCA) motor finance redress scheme aims to compensate customers who were treated unfairly because the commission arrangement was not adequately disclosed or was too excessive.

A Black Horse finance agreement may have been mis-sold if it involved:

Discretionary commission arrangements (DCAs): The broker could influence the interest rate paid by the customer in a way that increased the commission they received. DCAs were banned on 28 January 2021.
High commission arrangements: Where the amount of commission paid was at least 39% of the total cost of credit and 10% of the loan.
Tied arrangements: Where the relationship between the lender and broker could have influenced which finance provider was offered to the customer.

A finance agreement involving a commission arrangement doesn't automatically mean that Black Horse mis-sold the customer. Each agreement needs to be assessed against the FCA's rules, including the type of commission arrangement and what information was provided to the customer at the time.

Motor Finance Redress Scheme at a Glance

12.1 Million Agreements suspected to be eligible for compensation.

£829 Average payout estimated per agreement.

75% Eligible consumers predicted to make a claim.

£7.5 Billion Total redress expected to be paid to consumers.

Is Your Black Horse Finance Agreement Eligible?

If you previously financed a vehicle with Black Horse, your agreement may be eligible for compensation under the FCA’s motor finance redress scheme. Eligibility depends on various factors, such as when you took out the finance, the type of agreement you had, and whether certain commission arrangements were adequately disclosed to you.

Your Black Horse Agreement May Be Covered If:

You took out Black Horse motor finance between 6 April 2007 and 1 November 2024.
You financed a car, van, motorbike or campervan.
Your agreement was a type of regulated motor finance, including Personal Contract Purchase (PCP) or Hire Purchase (HP).
Black Horse paid commission to the dealer or broker that arranged your finance.
You were not given adequate information about the commission arrangement.

Your Agreement May Not Be Covered If:

You leased the vehicle, such as through a Personal Contract Hire (PCH) agreement.
Black Horse paid minimal or no commission to the dealer or broker.
You used the vehicle for business purposes, not personal use.

Your Black Horse finance agreement does not need to be active for you to claim compensation, so you can claim if you have settled the finance, no longer own the vehicle, or if it has been repossessed. You may also have had more than one eligible Black Horse agreement. Each finance agreement is considered separately, so having financed several vehicles over the relevant period could potentially result in more than one claim being assessed. If the person who held the Black Horse finance agreement has since passed away, their estate may be able to claim on their behalf.

How Has Black Horse Responded?

Black Horse is a part of Lloyds Banking Group, which has already made one of the largest financial provisions in the motor finance sector to cover the potential cost of compensation and associated expenses. The bank has set aside £1.95 billion, which it has described as 'current best estimate of the potential impact'.

This provision doesn't necessarily mean Black Horse will share £1.95bn between its customers, as it covers both the predicted compensation payouts and the costs of administering the redress process. The eventual cost could still rise or fall, particularly depending on the outcome of the ongoing legal challenges. Black Horse initially made smaller provisions, but as the scandal unfolded, the bank realised the costs exceeded its initial projections.

As one of the largest lenders, Black Horse has established a dedicated process for motor finance complaints. Following the partial suspension of the FCA scheme, Black Horse says it will continue working on complaints and contact customers when it can. Lloyds previously said it would not launch a legal challenge and believes the redress scheme is the 'right step' for customers and shareholders.

How the Black Horse Claims Process Works

If you believe Black Horse may have mis-sold you car finance, we recommend submitting your complaint as soon as possible to ensure you're in the queue for when payouts start arriving. Under the FCA’s redress scheme, you do not need to register a complaint to be eligible for or receive compensation, as Black Horse should contact you with the option of joining the scheme. You do not need to use a claims management company or a law firm to access the scheme. However, using a claims management company or law firm may benefit some customers.

The first step is to identify any Black Horse finance agreements you held during the period covered by the FCA’s redress scheme. Our online eligibility check can locate any old agreements you have taken out with Black Horse. The next step is to submit your complaint with Black Horse. With our easy-to-use system, you can provide your details and a signed letter of authority permitting us to handle your case. We will manage the process on your behalf, submit the required paperwork, and handle communication between you and Black Horse.

Black Horse will review your complaint to see if your finance agreement involved an unfair commission arrangement and is eligible for compensation under the FCA’s redress scheme. If you are due compensation, you can either accept or dispute the settlement offer, with payouts expected to arrive sometime in 2027.

How Much Compensation You Could Get From Black Horse

Around £829 Per Eligible Agreement

If your Black Horse finance agreement was mis-sold and you're eligible for compensation, the amount you could receive will depend on several factors. There is no fixed payout for a Black Horse finance claim. However, the FCA predicts that under its motor finance redress scheme, the average compensation per eligible agreement will be approximately £829. This figure is an industry-wide estimate, so your eventual payout could be higher or lower.

The amount of compensation you could receive depends on factors like:

How much commission was paid to the dealer or broker.
The type of commission arrangement involved.
The interest rate and overall cost of credit on your Black Horse agreement.
When you entered into the finance agreement.

If you have more than one eligible Black Horse finance agreement, each agreement will be assessed separately, meaning you could be entitled to multiple payouts.

The FCA has outlined how it plans to calculate compensation under its redress rules. Under the scheme, a relatively small number of consumers who experienced the most significant forms of unfairness could receive all commission paid, plus compensatory interest. For most other agreements, the regulator will calculate payouts based on the average of estimated loss and the commission paid, plus interest.

When Will Black Horse Customers Get Compensation?

If you are entitled to compensation from Black Horse, you are unlikely to receive a payment until 2027 at the earliest under the current timetable. Payouts were planned to start sooner, but this has been delayed while legal challenges are heard. Both lenders and consumers are challenging the scheme, including the amount of compensation due to be awarded. Until the legal process has concluded, Black Horse and other lenders do not have to calculate or pay compensation under the partial suspension of the scheme.

Despite the partial suspension, Black Horse finance claims haven't stopped altogether. Lenders must still comply with parts of the redress scheme, including carrying out preparatory work and progressing complaints as far as possible. They should also contact customers who have complained but are deemed ineligible for compensation under the scheme's rules.

If the redress scheme is upheld and the judgment is not appealed, the FCA still expects payments to arrive during 2027. However, if the scheme is overturned or significantly changed, the process could take longer and push payouts to 2028 or beyond.

Check if you’re eligible, you may be owed compensation…

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Frequently Asked Questions

No. Black Horse will not blacklist you if you decide to make a complaint. It is your legal right to complain and pursue compensation if you’re eligible. Your credit history will continue to reflect how you have managed your finances, and Black Horse will continue to apply its normal lending criteria if you apply for finance in the future. If you have an active agreement with Black Horse, your complaint will not affect it, and you should continue making payments as agreed.

Yes. Your Black Horse does not need to be active for it to fall within the motor finance redress scheme. Many mis-sold agreements were taken out as far back as April 2007, so most valid complaints will involve agreements that have already been paid off in full. Therefore, as long as you’re eligible, you can claim even if the agreement is paid off or if you have sold or part-exchanged the vehicle.

Yes. Don’t assume you cannot claim because you have lost your original documents. Black Horse will try to locate previous agreements using the information you provide and the records it holds. If there are any issues locating an agreement, we will do our best to assist.

Yes, you can claim for multiple motor finance agreements, even if they involve the same lender. Each agreement is assessed separately, so being ineligible for one Black Horse agreement doesn’t mean that another would also be ineligible. Likewise, you may get more or less compensation for one agreement than the other.