Black Horse Car Finance Claims 2026 — PCP & HP Compensation Guide

Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.

Black Horse is the UK’s largest motor finance lender and sits at the centre of the car finance mis-selling scandal. Lloyds Banking Group — Black Horse’s parent — has set aside £1.95 billion for motor finance redress. That is the highest provision of any lender in the UK, confirmed as unchanged following Lloyds’ review of the FCA’s final rules in April 2026.

In this guide

• Who Is Black Horse?
• Young v Black Horse — The Case That Started Everything
• The £1.95 Billion Provision — What It Means for Your Claim
• The 57% and 2% Figures — Why They Matter
• PS26/3 — The FCA Redress Scheme and Black Horse’s Obligations
• Are You Eligible to Claim Against Black Horse?
• What Is a Discretionary Commission Arrangement (DCA)?
• How Much Could Your Black Horse Claim Be Worth?
• FCA Scheme vs Court Route — Which Applies to You?
• How to Submit a Black Horse ComplaintOption 1 — Complain Directly to Black Horse (Free)
• In your complaint letter or form, state:
• Real Black Horse Claim Examples
• Why Complaining Before 30 June 2026 Matters
• Frequently Asked Questions
• Related Pages and Guides
• Sources and References
• Our Partner's Fees Explained
• Think You May Have a Motor Finance Claim?

Who Is Black Horse?

Black Horse Ltd is the motor finance trading arm of Lloyds Banking Group — one of the UK’s largest banks. It operates exclusively as a lender, providing PCP and HP finance through franchised and independent car dealerships across the UK. Black Horse does not sell cars. It provides the finance behind the deal, collecting interest and commission from dealers who act as credit brokers.

Because it operates through dealer networks rather than directly with consumers, many customers had no idea their finance was with Black Horse at all — they simply knew they were buying a car from a dealer. This is exactly the kind of arrangement that allowed undisclosed commissions to thrive: the dealer arranged the finance, set the interest rate within a range, received a commission from Black Horse, and the customer was told nothing about any of it.

Black Horse is also the lender behind finance agreements arranged through some manufacturer-branded schemes including Land Rover Financial Services (pre-July 2010) and certain Porsche agreements (pre-July 2010), before those brands switched to VWFS. If you had finance on a Land Rover, Range Rover or Porsche before July 2010, Black Horse is the entity to complain to.

Young v Black Horse — The Case That Started Everything

The car finance mis-selling scandal did not emerge from a regulator’s desk. It started with a single court case: Young v Black Horse.

A Black Horse customer successfully argued before the court that their finance agreement was unfair under Section 140A of the Consumer Credit Act 1974, because the commission paid by Black Horse to the dealer had not been properly disclosed. The dealer had set the customer’s interest rate using a discretionary commission arrangement — meaning the higher the rate they charged, the more commission they earned. The customer knew nothing about this.

The court agreed this created an unfair relationship. The case went to the Court of Appeal, which found in the consumer’s favour on much broader grounds in October 2024 — triggering a surge in complaints and Black Horse’s first significant provision. The Supreme Court then clarified the legal position in August 2025, upholding the core finding in the Johnson v FirstRand case: that excessive undisclosed commission with misleading conduct can still be found unfair under Section 140A, even without a fiduciary duty.

Young v Black Horse is the reason the FCA launched its investigation in January 2024, the reason Lloyds has set aside £1.95 billion, and the reason millions of UK drivers now have the right to claim. Black Horse’s own agreement with one of its customers became the legal foundation for the largest consumer finance redress scheme since PPI.

The £1.95 Billion Provision — What It Means for Your Claim

A provision is a sum of money a company sets aside on its balance sheet to cover anticipated future costs — in this case, compensation payments to customers.

Lloyds built up its Black Horse provision in stages:

The fact that Lloyds has ring-fenced £1.95 billion is not a guarantee of compensation for every claimant. It is, however, a formal acknowledgement at the highest corporate level that significant redress is coming. Analysts at some institutions have suggested Lloyds’ true exposure could ultimately exceed £4 billion once all claims, litigation and operational costs are factored in, though Lloyds itself has not confirmed any figure beyond the current provision.

A separate lawsuit is expected from law firm Courmacs Legal, acting on behalf of more than 30,000 Black Horse customers and seeking approximately £66 million outside the FCA scheme through the courts. This litigation runs parallel to the FCA redress scheme and does not affect eligible customers’ right to claim through the scheme.

The 57% and 2% Figures — Why They Matter

During the FCA’s review, data was collected on what Black Horse told customers who formally checked whether their agreement included a discretionary commission arrangement. The results were stark:

These are not estimates or projections. They are the actual outcomes of the formal checking process. They mean that if you had a Black Horse PCP or HP agreement in scope, there is a 57% chance your agreement is already confirmed as including a DCA — and only a 2% chance you have been told with certainty it did not.

The 41% of customers who received an uncertain response are not excluded from the scheme. Their agreements will be assessed under the FCA’s redress methodology, which uses a sampling and modelling approach across lenders’ full book of eligible agreements.

For any other lender, a 57% DCA confirmation rate would be striking. For the UK’s largest motor finance lender, it represents an enormous volume of affected agreements and is the single most compelling reason to check your eligibility without delay.

PS26/3 — The FCA Redress Scheme and Black Horse’s Obligations

On 30 March 2026, the FCA published Policy Statement PS26/3, formally confirming a nationwide consumer redress scheme for motor finance mis-selling. This is the most significant consumer finance regulatory action since PPI.

The scheme covers two types of agreements: those that included a discretionary commission arrangement (DCA) and those that included a tied arrangement or unusually high fixed commission. Black Horse’s 57%/2% data demonstrates that DCAs were widespread across its book.

Are You Eligible to Claim Against Black Horse?

You may be eligible to make a Black Horse car finance claim if:

The following are not covered by the FCA scheme:

• Personal Contract Hire (PCH) / leasing agreements — these are not credit agreements and are out of scope
• Agreements signed on or after 1 November 2024
• Agreements signed before 6 April 2007 — though other legal routes may be available in limited circumstances
• Business finance agreements — the scheme covers consumer agreements only

What Is a Discretionary Commission Arrangement (DCA)?

A discretionary commission arrangement (DCA) was a structure used by motor finance lenders — including Black Horse — that allowed the car dealer acting as credit broker to set the customer’s interest rate anywhere within a lender-defined range.

The higher the interest rate the dealer set, the more commission they received from Black Horse. The customer was not told that:

• The dealer could set the rate anywhere in the range
• The dealer received more commission for setting a higher rate
• The dealer had a direct financial incentive to charge them more

This created an inherent conflict of interest. The dealer was supposed to be acting as the customer’s broker — finding them a suitable finance deal — but was financially rewarded for making the deal more expensive. DCAs were banned by the FCA on 28 January 2021.

Under the FCA’s redress scheme, if your Black Horse agreement included a DCA and it was not clearly disclosed to you, you are eligible for compensation. You do not need to prove you were overcharged by a specific amount — the structure itself is considered unfair.

How Much Could Your Black Horse Claim Be Worth?

The FCA has confirmed an average payout of £829 per eligible agreement across all lenders and agreement types. Your specific amount depends on three variables: the size of your loan, your interest rate, and when your agreement started.

High-value vehicles, longer agreement terms and higher interest rates all increase the potential payout. Multiple Black Horse agreements — for example if you financed more than one car through Black Horse across different years — generate a separate claim for each.

Use our car finance claims calculator for an instant estimate based on your loan details.

FCA Scheme vs Court Route — Which Applies to You?

Most Black Horse customers will be compensated through the FCA’s PS26/3 redress scheme. However, there is a parallel court route that some claimants are pursuing, primarily through law firm Courmacs Legal.

For the vast majority of Black Horse customers, the FCA scheme is the most straightforward route. The court route may be relevant if your agreement falls outside the scheme’s scope or if you believe you are owed significantly more than the scheme methodology would calculate.

How to Submit a Black Horse ComplaintOption 1 — Complain Directly to Black Horse (Free)

You do not need a solicitor or claims management company to make this complaint. The FCA has emphasised that consumers can complain directly for free.

Black Horse complaint contact details

• Online: blackhorse.co.uk — use their online complaint form
• Post: Motor Finance Commission Complaints, Black Horse Ltd, One Lovell Park Road, Leeds, LS1 1NS
• Phone: 0344 824 8888 (Monday–Friday 8am–6pm)

In your complaint letter or form, state:

• Your full name and address at the time of the agreement
• The vehicle registration number
• Approximate start date of the finance agreement
• That you believe the agreement included an undisclosed discretionary commission arrangement
• That you are requesting full details of the commission paid and redress under the FCA’s PS26/3 scheme

Black Horse must acknowledge your complaint within five business days. Under the original scheme timetable a decision was due by 30 September 2026 for pre-30 June complaints; that deadline is suspended while the legal challenges run.

Option 2 — Use Claims Bible and Our Legal Partners (No Win, No Fee)

Claims Bible works with specialist legal partners experienced in motor finance mis-selling claims. They handle the entire process on your behalf — from tracing your agreements to submitting the complaint and chasing Black Horse for a decision — on a no win, no fee basis.

This is particularly useful if:

• You had multiple Black Horse agreements across different vehicles or years
• You are unsure whether your agreement was PCP, HP or another type
• Black Horse has already rejected a direct complaint
• You want the complaint handled professionally without managing correspondence yourself

If your claim is successful, a fee applies — see our fees page for the exact percentage. You pay nothing if the claim is unsuccessful.

You always have the right to complain directly to Black Horse and escalate to the FOS for free, without using a claims management company.

Real Black Horse Claim Examples

A Black Horse customer argued their PCP agreement was unfair because the commission paid to the dealer via a DCA had not been properly disclosed. The dealer had used the discretionary commission arrangement to set the customer’s interest rate higher than necessary, earning a larger commission without the customer’s knowledge. The case went to the Court of Appeal in October 2024 and was upheld — directly triggering the FCA’s formal investigation and ultimately the PS26/3 redress scheme.

Outcome: The Court of Appeal found in the consumer’s favour. The Supreme Court in August 2025 upheld the core Johnson finding on unfair commission, providing the legal basis for the entire nationwide scheme. This single claim created the framework under which millions of customers can now seek compensation.

A customer had financed two vehicles through separate Black Horse PCP agreements — one in 2013 and one in 2018. Both were arranged through different dealerships. Because each agreement is assessed individually, the customer was entitled to make two separate claims under the PS26/3 scheme. The pre-2014 agreement falls under the August 2026 scheme tranche; the post-2014 agreement falls under the June 2026 priority tranche.

Outcome: Two separate claims submitted. Both within scope. Each assessed independently against the FCA’s redress methodology. Combined estimated payout in excess of £1,500 before compensatory interest.

A customer purchased a Land Rover Discovery Sport in 2009 through a dealership that arranged ‘Land Rover Financial Services’ finance. The customer believed they were dealing with a Land Rover-branded finance product. In fact, the lender was Black Horse. The DCA structure meant the dealer earned a higher commission by setting a higher interest rate — none of which was disclosed.

Outcome: Complaint submitted to Black Horse (not Land Rover FS). Agreement within PS26/3 scope — pre-July 2010 Land Rover agreements are Black Horse agreements. Eligible for full scheme redress.

Why Complaining Before 30 June 2026 Matters

The FCA’s scheme splits into two tranches based on when your agreement started. For post-April 2014 agreements — which covers the majority of PCP customers — 30 June 2026 is the priority deadline

Complaining before 30 June 2026 means:

• Black Horse is required to contact you within three months — response by 30 September 2026
• Payment potentially before the end of 2026
• You are in the first group Black Horse must process — not waiting behind later complainants
• You protect your position regardless of the separate Courmacs litigation
• You avoid any risk around the 31 August 2027 final deadline

Remember: Black Horse is also required to proactively contact eligible customers who have not complained by December 2026 (post-2014) and February 2027 (pre-2014). However, waiting for Black Horse to contact you puts you in a later processing queue and means a later payment. Submitting a complaint now places you in priority.

Frequently Asked Questions

I’ve already paid off my Black Horse finance. Can I still claim?

Yes. The claim relates to the finance agreement and how it was sold, not whether you still have the car or an active agreement. If you paid interest on an agreement that included an undisclosed DCA, you are eligible for redress regardless of whether the agreement has ended.

I no longer have my Black Horse agreement documents. Can I still claim?

Yes. You can request a copy of your agreement from Black Horse under a Subject Access Request. Claims Bible’s partners can also assist with tracing old agreements — typically within two minutes using your personal details and vehicle registration.

Will making a Black Horse complaint affect my credit score?

No. Submitting a complaint to Black Horse or the Financial Ombudsman Service does not affect your credit score.

I had finance on a Land Rover through ‘Land Rover Financial Services’. Is that a Black Horse claim?

Yes — if the agreement was from before July 2010. Land Rover Financial Services agreements prior to July 2010 were funded by Black Horse. Post-July 2010, Land Rover switched to VWFS. Your complaint should be directed to Black Horse for pre-July 2010 agreements.

What if Black Horse rejects my complaint?

You have six months from the date of their final response letter to escalate to the Financial Ombudsman Service for free. The FOS provides an independent assessment and can order Black Horse to pay redress if it finds in your favour. Its decisions are binding on Black Horse.

I had multiple cars financed through Black Horse. Do I claim once or separately for each?

Each eligible agreement generates a separate claim. If you had three Black Horse PCP agreements, you may be entitled to three separate compensation payments. Each is assessed individually under the scheme methodology.

What is the difference between the FCA scheme and the Courmacs lawsuit?

The FCA PS26/3 scheme is the standard route for most customers. Black Horse assesses your agreement and pays redress under a defined methodology. The Courmacs lawsuit is a separate court action on behalf of approximately 30,000 customers seeking around £66 million outside the scheme. The two routes are not mutually exclusive in principle but you should take legal advice if considering the court route.

Can I claim if I used Black Horse finance as a business purchase?

The FCA scheme covers consumer credit agreements only. If the agreement was genuinely for business purposes, it is unlikely to be within scope. However, many agreements taken out by sole traders or in personal names for business use may still qualify — speak to a specialist about your specific circumstances.

Related Pages and Guides

Car Finance Claims — Full PS26/3 Guide

Santander Car Finance Claims

Close Brothers Car Finance Claims

Alphera (BMW Group) Car Finance Claims

Land Rover Car Finance Claims

How Far Back Can You Claim Car Finance Compensation?

The Johnson Remedy — What It Means for Your Claim

FCA Scheme 1 vs Scheme 2 — Which Applies to You?

Car Finance Claims Calculator

Sources and References

• FCA PS26/3 — Motor Finance Consumer Redress Scheme (30 March 2026)
• Lloyds Banking Group regulatory announcement — provision unchanged (2 April 2026)
• FCA — FCA confirms motor finance redress scheme
• Consumer Credit Act 1974, Section 140A
• Financial Ombudsman Service — motor finance complaint guidance

Think You May Have a Motor Finance Claim?

The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.