Updated: 11 March 2026

Originally Published: 19 March 2025

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You could be owed compensation if you signed a car finance agreement with Black Horse between 6 April 2007 and 1 November 2024.

Thousands of motorists across the UK are claiming on old Personal Contract Purchase and Hire Purchase agreements. Regulators have looked into how commissions were sold and found that some interest rates were unfairly manipulated and not made clear to consumers. If you had a commission tied into your agreement that was undisclosed or badly disclosed to you, and that commission raised the amount you had to pay in interest, you could have a Black Horse finance claim.

Initial successful Black Horse claims involve a refund of excess interest that arose from commission-related rate uplift. The first step is to review your agreement carefully, complete a car finance refund check, and assess whether your contract falls within the relevant period.

The following information on Black Horse PCP claims covers:

• Can I make a claim against Black Horse Finance?
• What is mis-sold car finance?
• How much could I get from Black Horse?
• How long do PCP claims take?
• How long until a car finance claim is paid out?
• Claims process and law relating to Black Horse
• Special provisions under Lloyds Banking Group
• Claim independently or use a finance claim expert?

Its aim is to be a comprehensive 2026 consumer information guide.

Do I Qualify for a Black Horse Finance Claim?

Eligibility depends on several factors.

You may have a valid Black Horse car finance claim if:

• You entered into a PCP or Hire Purchase agreement between April 2007 and November 2024.
• The dealer received commission that was not clearly explained in a meaningful way.
• Your interest rate may have been increased because of that commission structure.
• You were not presented with genuine alternative lenders.
• The total repayable amount appears disproportionately high when compared to market norms at the time.

Not every agreement will qualify. The central question is whether the relationship between lender and borrower was unfair.

If you're not sure, a free structured car finance refund check can tell you if your agreement is likely to be in scope before you make a formal complaint.

Why Black Horse Claims Are Arising in 2026

Before regulatory reforms took effect in 2021, certain commission models allowed dealers to adjust interest rates within a permitted range. A higher interest rate generated higher commission for the dealer.

In many cases, customers were not told that their rate could be adjusted in this way or how the commission mechanism operated. Although some agreements included general references to commission being paid, the disclosure often did not explain its potential impact on pricing.

The legal issue is not simply whether commission existed. The question is whether the commission arrangement created an unfair relationship under the Consumer Credit Act [1].

As awareness has increased, so too has the volume of car finance claims. Black Horse, as part of Lloyds Banking Group, is one of the lenders affected by this wider industry review.

Lloyds Banking Group Provision and What It Means

Lloyds Banking Group has publicly set aside substantial financial provisions in anticipation of potential motor finance redress exposure [2]. These provisions amount to billions of pounds across reporting periods.

A provision reflects an estimate of potential liability. It does not guarantee compensation for every agreement. It demonstrates, however, that lenders are preparing for structured and large-scale redress across the industry.

For consumers, the existence of such provisions reinforces that Black Horse compensation claims are being addressed within a formal financial and regulatory framework. This is not an isolated or speculative issue.

The Legal Framework Behind Mis-Sold Car Finance

Most Black Horse finance claims rely on the unfair relationship provisions contained within the Consumer Credit Act.

Under this framework, a court or the Financial Ombudsman Service may consider whether the relationship between lender and borrower was unfair because of:

• The terms of the agreement
• The way the agreement was operated
• The way rights were enforced

In commission cases, decision makers examine whether the incentive structure distorted the interest rate and whether disclosure enabled the borrower to make an informed decision.

Commission itself is not automatically unlawful. The issue is whether its existence and operation resulted in unfairness.

The assessment is holistic. It looks at the overall relationship rather than focusing solely on a single clause.

What Qualifies as Mis-Sold Car Finance?

Mis-sold car finance typically involves one or more of the following circumstances.

Poor Commission Disclosures

Were you told that commission “may be paid”, but not that it may affect your interest rate? That might not have been enough information for you to give informed consent.

Higher Interest Rates

If your APR was materially higher than other borrowers with a similar credit profile at the time, commission may have been a factor.

No Choice of Lenders

Were you told that Black Horse was your only option, or that you couldn’t meaningfully compare them with other lenders? That may mean you weren’t given a choice.

Pressure or Lack of Transparency Tactics

Were you pressured, rushed, told not to read documents or were the costs not clearly explained? This may help your Black Horse claim.

All claims are taken on their individual merits.

How Commission Could Have Increased Your Costs

Consider a practical example.

• Loan amount: £30,000
• Term: 48 months
• Base interest rate: 5.5 percent
• Dealer-adjusted rate: 7.5 percent

A 2 percent uplift over four years can add a significant sum in additional interest. Even relatively small percentage differences compound over time.

This example is illustrative. Actual Black Horse compensation will depend on the precise structure of your agreement and the interest differential.

However, it demonstrates how commission influence can affect total cost.

How Black Horse Compensation Is Calculated

Redress is normally worked out through the following steps:

• Calculate the interest rate that was paid.
• Determine whether commission affected that rate.
• Determine what would have been a reasonable rate by alternative lenders.
• Determine how much more interest you paid over the life of the loan.
• Interest gets refunded. Additional statutory interest gets added on.

You may be asking if you can "refund my PCP." Restorative justice is the goal. The borrower is meant to be refunded what they overpaid, leaving them in the position they would have been in if they weren't overcharged.

For a detailed breakdown of potential refund levels, see:

https://www.reclaim247.co.uk/claims-guide/how-much-will-i-get-back-from-black-horse-a-helpful-guide/

Step-by-Step: How to Make a Black Horse Finance Claim

Conduct a Car Finance Refund Check

A structured car finance refund check helps confirm:

• Whether your agreement falls within the relevant date range
• Whether commission indicators are present
• An estimate of potential car finance compensation

This initial step allows you to assess your position before committing to a formal complaint.

Gather Supporting Documentation

Strong claims are evidence-based. You should collect:

• The original credit agreement
• Pre-contract information
• APR and total repayable figures
• Monthly statements
• Dealer correspondence

Clear documentation improves the strength and clarity of your Black Horse finance claim.

Submit a Formal Complaint

Write directly to Black Horse saying you believe your agreement was mis-sold car finance because commission could have affected your rate of interest.

You should include your agreement number and dates along with a brief summary of your complaint.

For a structured guide on submitting your complaint, see:

https://www.reclaim247.co.uk/claims-guide/how-to-claim-against-black-horse-finance/

How Long Does a PCP Claim Take?

PCP claims can take several months, and in some cases longer, depending on regulatory timelines and the complexity of your agreement.

At present, final responses to most motor finance commission complaints are paused. Firms are not required to issue final decisions until 31 May 2026 [3].

From 31 May 2026, firms must begin issuing final responses. For complaints not covered by any potential compensation scheme, firms will generally have up to eight weeks from that date to provide a final response.

Straightforward cases may be resolved relatively quickly once the response window reopens. More complex cases, particularly those requiring detailed commission analysis, may take longer.

If a complaint is escalated to the Financial Ombudsman Service after a final response is issued, additional time should be expected due to the Ombudsman’s review process.

How Long Does Car Finance Claims Take to Pay Out?

There is no fixed universal timetable.

If liability is quickly accepted, payment can be made within weeks of receiving the final response. If liability is disputed or needs further review, it will take longer. If your case goes to the Ombudsman, it can take several months depending on their workload and the complexity of your case.

Understanding this variability helps set realistic expectations.

The Complaint Lifecycle in Practice

The process generally follows these stages:

1. Complaint submission to Black Horse.
2. Formal acknowledgement.
3. Internal investigation and commission review.
4. Final response issued.
5. If upheld, calculation of Black Horse compensation.
6. Payment of car finance refund.
7. If rejected, optional escalation to the Financial Ombudsman Service.

Each stage requires careful review of documentation and pricing history.

What If My Claim Is Rejected?

If Black Horse rejects your claim, you are not without options.

You should review the reasoning carefully and compare it with your documentation. If you think the assessment is wrong, you can complain to the Financial Ombudsman Service within six months.

The Ombudsman is independent and can order lenders to pay compensation if they agree.

Special Situations

If You Settled Early

Settlement does not automatically prevent a claim. Eligibility depends on when the agreement was entered into.

If You Refinanced

Refinancing does not necessarily remove eligibility. Each agreement may be assessed separately.

If You Had Multiple Agreements

Each contract may be reviewed independently for potential Black Horse compensation.

If Your Credit Was Poor

Credit quality alone does not invalidate a claim. The focus is whether commission unfairly inflated your rate beyond what was justified.

Proceeding Independently or Using a Finance Claims Expert

You may pursue a Black Horse finance claim yourself at no cost. Many consumers choose this route.

Alternatively, you may engage a finance claims expert who can:

• Review your documentation
• Identify commission indicators
• Structure your complaint
• Manage correspondence
• Advise on escalation

A finance claims expert does not increase eligibility. Their role is procedural support.

Before deciding, many consumers begin with a free car finance refund check via a claims management company to understand whether a claim is likely to succeed.

Taking the Next Step

If you think your agreement may have included mis-sold car finance then it's important to take the right steps.

Check your agreement in detail, then complete a car finance refund check to see if you could be eligible. Collect evidence to support your claim. Make a clear and honest complaint.

Black Horse compensation isn't automatic. A formal review of your agreement will be made under the relevant legislation.

Frequently Asked Questions

Can I make a claim against Black Horse Finance if my agreement has terminated?

Yes. Any agreements you took out during the qualifying period are still valid even if the finance has finished or you have sold the vehicle.

How long does a PCP claim take?

Straightforward claims may resolve within weeks after review. More complex cases can take several months.

How long does car finance claims take to pay out?

Payment timing depends on whether liability is accepted quickly or whether escalation is required.

How much Black Horse compensation could I receive?

Industry modelling suggests average payouts of around £700 per agreement [4], although individual outcomes vary significantly.

Will I need to use a solicitor?

Most customers will not need to. But, you can continue to use a finance claims specialist if you wish.

Conclusion

2026 still sees high levels of Black Horse claim activity, this is due to the number of agreements written at the time when commission structures were opaque.

If commission affected the interest rate you paid without appropriate disclosure, you could be due a Black Horse refund and car finance compensation.

You can either do this on your own or seek professional assistance. Whichever you do, the best thing to do is to go methodically armed with facts and a knowledge of your rights.

A car finance refund check is often the most effective place to start.

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References:

1. The question is whether the commission arrangement created an unfair relationship under the Consumer Credit Act - https://www.fca.org.uk/news/statements/fca-consult-compensation-scheme-motor-finance-customers
2. Lloyds Banking Group has publicly set aside substantial financial provisions in anticipation of potential motor finance redress exposure - https://www.thebanker.com/content/29f463e3-f509-4ca6-8f90-1d1873541f05
3. Firms are not required to issue final decisions until 31 May 2026 - https://www.fca.org.uk/news/statements/pause-motor-finance-complaints-handling-lift-31-may-2026
4. Industry modelling suggests average payouts of around £700 per agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme