Group between April 2007 and November 2024, you could be owed up to £829 in compensation. The UK’s financial regulator, the Financial Conduct Authority (FCA), confirmed a mass redress scheme on 30 March 2026, covering millions of PCP and Hire Purchase agreements across the UK — and Northridge Finance is firmly within scope.
What Is the Northridge Finance Car Finance Scandal?
Northridge Finance is a trading name of NIIB Group Ltd, which operates as a division of Bank of Ireland UK. For years, Northridge provided motor finance agreements — including Personal Contract Purchase (PCP) and Hire Purchase (HP) — to thousands of UK drivers. However, concerns have grown that many of these agreements involved hidden or insufficiently disclosed commission arrangements that cost customers money.
Northridge Finance has acknowledged on its website that some of its car finance agreements may have included discretionary or non-discretionary commissions. Bank of Ireland has set aside £142 million — later increased — for paying compensation claims.
At the centre of the issue is what the FCA calls a Discretionary Commission Arrangement (DCA). DCAs were a hidden type of commission that allowed dealers and brokers to increase the commission they earned by charging customers more. The arrangement meant that a broker could set a higher interest rate on an agreement, meaning they would earn more in commission. DCAs were outlawed in January 2021.
In other words, the dealer arranging your Northridge finance may have quietly inflated your interest rate to earn a bigger cut without telling you. That is precisely the kind of unfair relationship the FCA’s redress scheme is designed to address.
What Is the NIIB Group Link and Why Does It Matter?
Many drivers may not realise their Northridge Finance agreement sits within the wider NIIB Group structure. Northridge Finance is part of NIIB Group, which is being investigated by the FCA for PCP claims and other regulated agreements. This means that if you financed a vehicle under the NIIB or Northridge brand — even if you don’t immediately recognise either name your agreement could be included in the FCA’s review.
Furthermore, if you have had loans, car finance, or NIIB Finance agreements, they will be included if your claim relates to a failure in commission or disclosure. This is important for anyone who may have had multiple finance products arranged through these brands over the years.
If you are unsure which lender provided your agreement, check your original finance documents or your credit file, where the lender name will be listed alongside the agreement details.
Am I Eligible to Make a Northridge Finance Claim?
You may be eligible to make a Northridge Finance claim if you meet the following criteria:
- You took out a PCP or Hire Purchase (HP) agreement with Northridge Finance or NIIB Group
- Your agreement was entered into between 6 April 2007 and 28 January 2021 (for DCA-based claims) or up to November 2024 under the broader redress scheme
- Your dealer or broker did not disclose that they were earning a commission — or did not clearly explain how that commission was calculated
- The commission arrangement affected your interest rate, meaning you paid more than you should have
- You can be eligible even if you’ve fully paid off the finance deal, no longer own the car, or even if the car was repossessed.
- If your agreement has ended, you are still eligible to claim provided it was made within the specified period.
You do not need to remember every detail of your original agreement. Experienced solicitors can request the relevant documentation on your behalf and assess whether your agreement qualifies.
How Much Compensation Could You Receive?
The amount you could receive depends on the specific details of your agreement — including the size of the commission paid, the type of arrangement involved, and how long you held the finance.
The FCA confirmed its final redress scheme rules on 30 March 2026, increasing its average redress estimate from £700 to £829. However, individual payouts can vary significantly, and some agreements may attract higher awards depending on the commission structure involved.
| Agreement Type | Estimated Compensation | Notes |
|---|---|---|
| DCA (Discretionary Commission Arrangement) | Up to £950 | Interest rate artificially inflated by broker |
| Non-DCA (undisclosed fixed commission) | £700–£829 average | Based on FCA redress scheme estimates |
| Multiple agreements | Per agreement | Each agreement assessed individually |
| Agreements post-2014 | Scheme starts 30 June 2026 | Lenders must respond within 3 months |
| Agreements pre-2014 | Scheme starts 31 August 2026 | Lenders must respond within 3 months |
These figures are based on FCA redress scheme estimates and are indicative only. Your actual award depends on the specific facts of your case.
Importantly, the FCA’s redress scheme is expected to deliver payouts of around £7.5 billion across 12.1 million affected agreements. This is one of the largest consumer redress schemes in UK financial history.
How the Claims Process Works
Starting a Northridge Finance claim is straightforward. Here is what to expect:
- Contact National Claims today — we will connect you with experienced solicitors who specialise in car finance mis-selling and can assess your agreement immediately.
- Provide your basic details — your name, approximate dates of finance, and the vehicle involved. Solicitors can also help retrieve agreement information if you no longer have original documents.
- Your solicitor investigates your agreement — they will request commission disclosure records directly from Northridge Finance or NIIB Group and review your interest rate against market benchmarks.
- Your complaint is registered — even during the current FCA review period, registering your complaint now formally secures your position in the process.
- Await the FCA scheme timeline — once the scheme starts, your lender will confirm if you are owed compensation and how much within three months, then pay the amount owed within the following one month.
- Receive your compensation — if your claim succeeds, your solicitor will confirm the redress offer and ensure the payment is handled correctly.
The complaint pause is lifting on 31 May 2026, after which lenders must begin processing final responses. Acting now means your claim is already in the queue before the deadline passes.
Is Northridge Finance Part of the PCP Claim?
Yes — Northridge Finance is included in the FCA’s confirmed car finance redress scheme. Northridge Finance is a trading name of NIIB Group Ltd, a division of Bank of Ireland UK, and the FCA’s investigation covers agreements arranged under both brands. If your Northridge Finance agreement was a Personal Contract Purchase (PCP) or Hire Purchase (HP) deal taken out between April 2007 and November 2024, and your broker or dealer failed to clearly disclose the commission they earned or used a Discretionary Commission Arrangement (DCA) to inflate your interest rate without telling you you could be owed compensation. The FCA confirmed its final redress scheme rules on 30 March 2026, with average payouts estimated at £829 per agreement. Bank of Ireland has already set aside over £142 million to cover potential claims, and eligible customers are expected to be contacted directly by their lender once the scheme goes live from June 2026.
Why Choose National Claims?
National Claims has helped thousands of people across the UK understand and exercise their legal rights. Here is why people trust us with their claims:
- No upfront costs — our solicitors work on a no-win, no-fee basis, so you pay nothing to get started
- Experienced solicitor connections — we connect you directly with solicitors who specialise in financial mis-selling and understand the FCA’s redress framework inside out
- End-to-end case handling — from retrieving your original agreement to negotiating your redress, your solicitor manages every step
- Thousands of claims handled — National Claims’ experience across financial and personal injury claims means you benefit from a proven, trusted process
Frequently Asked Questions
Q1: Can I make a Northridge Finance claim if my agreement has ended?
A: Yes, absolutely. You can still claim even if you have fully paid off your finance agreement, sold the vehicle, or the agreement has otherwise concluded. Eligibility is based on when the agreement was taken out, not its current status.
Q2: What is the difference between Northridge Finance and NIIB Group?
A: Northridge Finance is a trading name of NIIB Group Ltd, which is itself a division of Bank of Ireland UK. If your agreement was arranged under either brand, it falls within the same FCA investigation and is potentially eligible for the redress scheme.
Q3: How long do I have to make a Northridge car finance claim?
A: The FCA’s complaint pause lifts on 31 May 2026, at which point lenders must issue final responses. You should register your claim now to ensure you are included in the process before lenders begin processing cases under the redress scheme from June and August 2026.
Q4: Will making a Northridge Finance claim cost me anything?
A: There are no upfront costs when you work with National Claims. Solicitors handle your claim on a no-win, no-fee basis, meaning you only pay if your claim is successful.
Q5: How much could I get from a Northridge car finance claim?
A: The FCA estimates average redress of around £829 per agreement, though individual payouts can reach up to £950 or higher depending on the size and nature of the commission involved. If you had multiple agreements, each one may be assessed separately.
Start Your Northridge Finance Claim Today
The FCA’s redress scheme is already in motion, and the complaint pause ends on 31 May 2026. That means now is exactly the right time to check whether your Northridge Finance or NIIB agreement included hidden commissions — and to secure your position in the claims process before lenders begin issuing final responses.
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.
We’re proud of our excellent customer reviews
We thrive on delivering exceptional service and ensuring our clients’ satisfaction. Don’t just take our word for it. Check out some of our independent reviews to see what our clients have to say.
Excellent
This firm is excellent, they sorted out my car pay out and injury claim very fast, they always communicate with you all the time.
My accident case was dealt with confidence and with great result of the outcome, especially James kept me informed all the time.
I was very impressed at the way my inquiry was treated. I was listened to attentively and everything I needed to know was explained to me.
