Motorbike Finance Claim — PCP & HP Compensation 2026
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.
If you financed a motorbike or motorcycle on a PCP or HP agreement between April 2007 and November 2024, you may be entitled to compensation under the FCA confirmed motor finance redress scheme (PS26/3, 30 March 2026). The scheme covers regulated consumer credit agreements for motorcycles as well as cars, provided the agreement was an FCA-regulated PCP or HP arrangement and involved undisclosed commission. This guide explains eligibility, which lenders are in scope, and how to submit your complaint.
In this guide
- Are Motorbike Finance Agreements Covered by the FCA Scheme?
- Which Motorbike Finance Lenders Are in Scope?
- Three Grounds for a Motorbike Finance Claim
- What Types of Motorcycle Agreements Are Not Covered?
- How Much Could You Receive?
- Scheme Timetable (Original Dates, Now Suspended)
- How to Complain About Your Motorcycle Finance Agreement
- Related Pages
- Frequently Asked Questions
- Our Partner's Fees Explained
- Think You May Have a Motor Finance Claim?
Are Motorbike Finance Agreements Covered by the FCA Scheme?
Yes — with an important qualification. The FCA scheme covers motor finance agreements that are regulated consumer credit agreements under the Consumer Credit Act 1974. Most PCP and HP agreements for motorbikes arranged through dealerships using manufacturer finance or specialist lenders are regulated consumer credit agreements and fall within the scheme. However, purely commercial agreements — where the motorcycle was financed for business use rather than personal use — are less likely to be in scope.
If you financed your motorbike through a manufacturer captive finance company (Honda Financial Services, Yamaha Motor Finance, BMW Motorrad Financial Services, Kawasaki Financial Services) or through a specialist lender (Black Horse, Close Brothers, MotoNovo, Barclays) on a personal PCP or HP agreement, your agreement should be assessed under the same criteria as a car finance agreement.
Which Motorbike Finance Lenders Are in Scope?
Honda Financial Services
Honda Financial Services is operated through the same entity as Honda car finance — Honda Finance Europe Plc, which is FCA-authorised and provides finance for both Honda cars and Honda motorcycles through the UK franchised dealer network. If your Honda motorcycle finance agreement names Honda Finance Europe as the lender and was a regulated PCP or HP agreement, it is within PS26/3.
BMW Motorrad Financial Services
BMW Group Financial Services (GB) Ltd provides finance for BMW Motorrad (motorcycles) through the BMW dealership and specialist Motorrad dealer network. The same £277 million BMW Group provision that covers BMW and MINI car finance also covers BMW Motorrad agreements, as all are arranged through the same FCA-authorised entity.
Black Horse and Close Brothers
Both Black Horse (Lloyds Banking Group) and Close Brothers Motor Finance provided finance for motorbikes and motorcycles alongside cars through independent dealers and manufacturer networks. Black Horse has a £2 billion provision and Close Brothers is a key defendant in the Supreme Court Johnson case. Both lenders used DCA arrangements across their motor finance portfolios including motorcycle agreements.
Black Horse Car Finance Claims
Close Brothers Car Finance Claims
MotoNovo Finance
MotoNovo Finance is one of the largest independent motor finance lenders in the UK and specifically provides finance for motorcycles as well as cars. As a major independent lender with significant market share in the motorcycle finance sector, MotoNovo agreements in the eligible period are a significant focus area under the scheme.
Other Manufacturer Finance Arms
Kawasaki Financial Services, Triumph Financial Services, Yamaha Motor Finance and Ducati Financial Services all provided regulated motorcycle finance through dealer networks in the eligible period. Where these agreements were structured as FCA-regulated PCP or HP and involved undisclosed commission arrangements, they fall within the scheme criteria in the same way as car finance agreements from those manufacturers.
Three Grounds for a Motorbike Finance Claim
1. Discretionary Commission Arrangements
Motorcycle dealerships arranging finance through manufacturer captive lenders or independent lenders prior to 28 January 2021 could set your interest rate within a range and earn more commission the higher the rate. Where this was not disclosed to you at the point of sale, you are eligible for compensation. The DCA model applied to motorcycle finance in the same way as car finance — the FCA investigation covered motor finance broadly, not only car finance.
2. Unfairly High Fixed Commission
Post-January 2021 motorcycle finance agreements may qualify where the fixed commission met the FCA threshold of 39% of total cost of credit and 10% of the loan amount. Premium motorcycle brands — BMW Motorrad, Ducati, Triumph Bonneville range — typically involve larger loan amounts where this threshold is more frequently met.
3. Dealer Finance Department Commission Non-Disclosure
Motorcycle dealerships — particularly for premium and sports brands — operated active finance sales processes where the commission structure between the lender and dealer was a significant factor in the rate offered to customers. Where this was not clearly disclosed, it creates grounds for a complaint regardless of whether a formal DCA existed.
What Types of Motorcycle Agreements Are Not Covered?
The FCA scheme does not cover personal contract hire (PCH) or leasing agreements, which are structured differently and do not involve the same commission arrangements. Business finance agreements used for commercial motorcycle fleets or delivery vehicles are also generally outside the consumer credit scope of the scheme. Agreements that fall outside the April 2007 to November 2024 window are not eligible.
How Much Could You Receive?
The FCA confirmed average payout is £829 per eligible agreement. For motorcycle agreements the compensation amount depends on the original loan size — a £15,000 BMW R1250GS financed over four years will produce a larger payout than a £4,000 Honda CBR125 on a two-year agreement. Your amount uses the hybrid remedy: averaging your estimated interest overpayment (17% APR reduction for post-April 2014 agreements, 21% for pre-April 2014) and the commission paid, plus compensatory interest at Bank of England base rate plus 1% per year.
Scheme Timetable (Original Dates, Now Suspended)
Post-April 2014 agreements: Complain before 30 June 2026 → lender must respond by 30 September 2026 → payment by November 2026
Pre-April 2014 agreements: Complain before 31 August 2026 → decision by 30 November 2026 → payment by January 2027
Final complaint deadline: 31 August 2027
How to Complain About Your Motorcycle Finance Agreement
Identify the lender named on your original finance agreement — this is the entity you submit your complaint to. It may be the manufacturer finance company (Honda Finance Europe, BMW Financial Services) or an independent lender (Black Horse, Close Brothers, MotoNovo). Submit your complaint in writing referencing PS26/3. Include your full name, date of birth, address at the time of the agreement, motorcycle registration number and a statement that you are complaining about undisclosed commission arrangements.
Related Pages
Black Horse Car Finance Claims
Close Brothers Car Finance Claims
Frequently Asked Questions
My motorbike finance was arranged through a dealer, not directly with the manufacturer. Does that matter?
No. The scheme specifically targets commission arrangements between lenders and dealers. Finance arranged through a dealership is exactly the scenario PS26/3 addresses. The dealer acting as the point of sale is where commission non-disclosure most commonly occurred.
I financed a scooter, not a full motorcycle. Is that covered?
Scooters financed on regulated PCP or HP agreements through FCA-authorised lenders are within scope in the same way as motorcycles. The vehicle type does not affect eligibility — what matters is whether the finance agreement was a regulated consumer credit agreement involving undisclosed commission.
My motorcycle was stolen and the insurance paid out. Can I still claim on the finance?
Yes. The fate of the vehicle — including theft and insurance payout — does not affect your eligibility under the FCA scheme. The claim relates to the commission arrangement at the inception of the finance agreement, not the subsequent history of the motorcycle.
I used the motorcycle for commuting to work. Is that a personal or business agreement?
Commuting is a personal use. Even if you used the motorcycle to travel to and from work, if the finance agreement was taken out in your personal name as a consumer credit agreement rather than in a business name, it is almost certainly a regulated consumer credit agreement and within scope of the scheme.
I had a car and a motorcycle both on finance with Black Horse. Can I claim for both?
Yes. Each eligible agreement is assessed independently. If both your car and motorcycle agreements with Black Horse fall within the April 2007 to November 2024 window and involved undisclosed commission, you can claim for each separately and receive compensation for both.
Black Horse Car Finance Claims
You will be redirected to our partner’s website to complete your claim.
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.
