A Black Horse Finance claim in 2026 could entitle you to a refund on overpaid interest if your car finance agreement included a commission arrangement that was not properly disclosed. The FCA confirmed its industry-wide motor finance redress scheme in March 2026 (PS26/3), covering agreements taken out between April 2007 and November 2024. Average payouts are estimated at around £829 per agreement, with the scheme expected to put £7.5 billion back into consumers’ pockets.
What Is the Black Horse Finance Mis-Selling Scandal?
Black Horse is the UK’s largest motor finance lender and operates as part of Lloyds Banking Group. For years, Black Horse — like many other lenders — used commission arrangements with car dealerships that allowed brokers to set or adjust the interest rate on a customer’s finance agreement. The higher the rate they set, the more commission they earned. Critically, these arrangements were rarely disclosed to customers at the point of sale.
Investigations revealed that many lenders allowed brokers or car dealerships to increase interest rates to earn higher commission — and these arrangements were not always disclosed to customers. As a result, many motorists unknowingly paid more interest on their car finance agreements than they should have.
The landmark case of Young v Black Horse directly triggered the FCA’s investigation. A Black Horse customer successfully argued their finance agreement was unfair because the commission paid to the dealer had not been properly disclosed — establishing the legal foundation for claims against all car finance lenders and leading directly to the FCA investigation launched in January 2024.
The Supreme Court delivered its ruling on 1 August 2025, confirming that undisclosed commissions could render a lending relationship unfair under the Consumer Credit Act 1974. Following the judgment, Lloyds Banking Group which owns Black Horse — raised its financial reserves to £2 billion to cover potential redress costs. The FCA then moved swiftly, confirming the motor finance redress scheme within 48 hours of the Supreme Court ruling.
Am I Eligible to Make a Black Horse Finance Claim?
Many drivers are surprised to discover they may be in scope. You do not need paperwork to hand, and the agreement does not need to be active. Eligibility is broader than most people expect.
You may have a valid Black Horse Finance claim if:
- You took out a PCP (Personal Contract Purchase) or HP (Hire Purchase) agreement with Black Horse between 6 April 2007 and November 2024
- The dealer arranged the finance on your behalf
- Commission was paid to the dealer but was not clearly explained to you
- Your interest rate may have been set higher than necessary due to that commission arrangement
- You were not offered multiple finance options or independent financial advice
- Your agreement has already been paid off — settled agreements are still eligible
The FCA estimates that approximately 12 million PCP and HP agreements started between 2007 and late 2024 may be eligible for a refund.Leased vehicles (PCH) and loans used independently to purchase a car are not covered. However, 57% of Black Horse customers who lodged a complaint were confirmed as having a discretionary commission arrangement — and only 2% were told they definitely did not.
How Much Could You Receive?
Compensation under the FCA scheme varies depending on the size of your loan, the length of your agreement, the commission structure involved, and the interest rate you paid. The FCA’s scheme uses a formula that balances estimated consumer loss against the commission paid.
The following figures are illustrative estimates based on FCA projections and industry data. Your actual award depends on the specific facts of your case.
| Agreement Type / Situation | Estimated Refund Range (£) | Notes |
|---|---|---|
| Standard PCP or HP with undisclosed commission | £200 – £1,650+ | Based on FCA scheme methodology |
| DCA (Discretionary Commission Arrangement) case | Up to full commission + interest | For agreements closely aligned with Johnson ruling |
| Average across all eligible agreements | ~£829 | FCA PS26/3 projection |
| Johnson-aligned cases (very high undisclosed commission) | Full commission repayment | ~90,000 consumers in this category |
Simple interest is paid on all compensation, calculated at the average Bank of England base rate per year plus 1%, from the date of overpayment to the date compensation is paid, with a minimum rate of 3% per year.
Lloyds Banking Group has confirmed its provision for motor finance redress at £1.95 billion — the highest of any lender in the UK, and the largest single corporate provision for any consumer finance scandal since PPI.
Key Deadlines: The 2026 Black Horse Finance Timeline
Understanding the timeline is critical. Complaining sooner places you in the priority queue and means you receive your refund faster.
The FCA’s motor finance compensation scheme came into force on 31 March 2026 (PS26/3), with a short implementation period for firms to prepare. Black Horse Here is what the timeline looks like:
- 31 May 2026 — The FCA’s complaint handling pause lifts. Black Horse must begin responding to outstanding complaints from this date.
- 30 June 2026 — The scheme opens for agreements taken out from 1 April 2014. If you complain before 30 June, Black Horse should tell you whether you are owed a refund and how much by 30 September 2026. If you accept the offer, payment should follow within a month — meaning approximately November 2026.
- 31 August 2026 — The second tranche of the scheme opens, covering Black Horse agreements from 6 April 2007 to 31 March 2014.
- 31 August 2027 — The final deadline to submit a complaint and be included in the scheme.
Customers already in the queue will be processed before those who are not. Complaining before 30 June 2026 places you in the priority group. Do not wait the sooner you act, the sooner you receive any compensation owed.
How the Black Horse Finance Claims Process Works
Starting your claim does not require paperwork, original documents, or a detailed understanding of financial law. Here is how the process works step by step:
- Contact National Claims first. We review your situation, confirm whether your agreement is likely in scope, and connect you with an experienced solicitor who specialises in car finance mis-selling claims.
- We locate your agreement. You do not need your original paperwork. Most agreements can be traced using your personal details — no documentation is required to get started.
- A formal complaint is submitted. Your solicitor submits a complaint to Black Horse setting out the basis of the claim, including any commission arrangement that was not properly disclosed.
- Black Horse reviews your agreement. Under the FCA scheme, Black Horse assesses whether your agreement is in scope and whether you are owed redress.
- You receive a decision. Black Horse confirms whether you are owed compensation and, if so, how much — factoring in the overpaid interest and any applicable commission adjustment.
- Payment is made. Once you accept any offer, payment should follow within approximately one month. For post-2014 agreements where you complain before 30 June 2026, payments could arrive as early as November 2026.
Throughout this process, your solicitor manages the detail. Furthermore, most car finance claims operate on a no-win, no-fee basis — meaning you pay nothing upfront.
Why Choose National Claims?
Thousands of people across the UK trust National Claims to handle their car finance complaints. Here is why:
- Specialist solicitor connections — We connect you with solicitors who have deep experience in FCA-regulated financial mis-selling claims, including PCP and HP agreements dating back to 2007.
- No upfront costs — You do not pay anything to begin your claim. Solicitor fees are only deducted from your compensation if your claim is successful.
- No paperwork needed to start — We can begin reviewing your Black Horse agreement immediately using your personal details alone.
- Timely action matters — With key deadlines falling from June 2026, starting now puts you in the priority group for faster compensation. National Claims’ experience handling thousands of cases demonstrates the importance of acting before the queue grows further.
Frequently Asked Questions
Q1: How do I know if my Black Horse agreement included a discretionary commission arrangement? A: You may not know without checking — and that is exactly why the FCA scheme exists. According to data gathered during the FCA’s investigation, 57% of Black Horse customers who submitted a complaint were confirmed as having a DCA. The best approach is to submit a complaint and let Black Horse review the agreement against the scheme criteria.
Q2: How much could I get back from Black Horse Finance?
A: The FCA estimates average payouts of around £829 per agreement. However, amounts vary significantly based on your loan size, interest rate, agreement length, and the type of commission arrangement involved. Customers with large loans or very high undisclosed commissions may receive considerably more.
Q3: Do I need my original finance documents to make a claim?
A: No. Black Horse can locate your agreement using your name, date of birth, and address history. You do not need to find paperwork from years ago to get started.
Q4: Will it cost me anything to make a Black Horse Finance claim?
A: In most cases, solicitors handle car finance claims on a no-win, no-fee basis, meaning you pay nothing upfront. If successful, a fee is deducted from your compensation. You also have the option to complain to Black Horse directly at no cost, though specialist support can help maximise your outcome.
Q5: What is the deadline for making a Black Horse Finance claim?
A: The final deadline to submit a complaint and be included in the FCA scheme is 31 August 2027. However, complaining before 30 June 2026 for post-2014 agreements places you in the priority group, with payments potentially arriving as early as November 2026. Earlier action means earlier payment.
Start Your Black Horse Finance Claim Today
Don’t wait while your claim window closes. Speak with National Claims today. We’ll connect you with experienced solicitors who understand your case and fight for the maximum compensation you deserve.
Customers pay up to 25% (incl. VAT) of the amount recovered towards solicitor costs and if you cancel outside your cooling off period, you may be charged a fee.
About National Claims
This article was written by the National Claims content team. Our specialists have years of experience helping people across the UK with personal injury, road traffic accident, and housing disrepair claims. We work alongside regulated solicitors to ensure our information is accurate, up-to-date, and genuinely useful for anyone seeking to understand their rights after an accident.
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