Northridge Finance Car Finance Claim – Check If You’re Owed Compensation
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.
Northridge Finance is the trading name of NIIB Group Ltd, part of Bank of Ireland UK. It is one of the least well-known lenders in the motor finance mis-selling scandal — but one of the most heavily exposed. Bank of Ireland has set aside £350 million for redress, more than Barclays Partner Finance and more than Close Brothers. If you financed a vehicle through Northridge on PCP or Hire Purchase between April 2007 and November 2024, you may be owed compensation averaging £829.
In this guide
- Who Is Northridge Finance — And Why Does the Name Matter?
- Why Northridge Finance Is More Exposed Than Most People Realise
- What Is a Northridge Finance Car Finance Claim?
- Three Types of Commission That May Have Affected Your Northridge Agreement
- Are You Eligible to Make a Northridge Claim?
- How Much Could a Northridge Car Finance Claim Be Worth?
- Key Dates for Northridge Finance CustomersApril 2007 — Eligible agreements begin
- Why You Should Complain to Northridge Now — Not Wait
- How Claims Bible Helps With Northridge Claims
- Frequently Asked Questions
- Our Partner's Fees Explained
- Think You May Have a Motor Finance Claim?
Who Is Northridge Finance — And Why Does the Name Matter?
Most people who received car finance through Northridge have never heard of the parent companies behind it. Understanding the full picture helps you know who to complain to and what to search for.
Northridge Finance is the consumer-facing brand. Behind it sits NIIB Group Ltd — a company registered in Northern Ireland with its head office in Belfast. NIIB Group is itself a division of Bank of Ireland UK, which is part of the wider Bank of Ireland Group based in Dublin.
When you arranged car finance through a dealership and your monthly payments went to Northridge, your lender was technically NIIB Group Ltd trading as Northridge Finance. If you are searching for your agreement, tracing old paperwork, or checking the FCA register, you may need to use any of these names:
- Northridge Finance
- NIIB Group Ltd
- NIIB Group Limited
- Bank of Ireland UK Asset Finance
Claims Bible can trace all Northridge / NIIB agreements in your name — going back to 2007 — in under two minutes, regardless of which name appears on your original paperwork.
Northridge Finance, trading as NIIB Group Ltd, is one of the most heavily exposed lenders in the motor finance mis-selling scandal, having set aside £350 million for redress. This provision is larger than the amounts set aside by both Barclays Partner Finance and Close Brothers, and is only smaller than a few major lenders, including Lloyds / Black Horse. If you had a PCP or HP agreement between 2007 and 2024, you may be owed an average compensation of £829 due to undisclosed commission arrangements. For a full overview of your rights and eligibility, consult our ultimate guide to car finance claims, which details how to pursue car finance claims and explains that you can still claim even if you do not have original paperwork. You can also use the online car finance claims calculator to estimate your potential payout
Why Northridge Finance Is More Exposed Than Most People Realise
Northridge Finance has a low public profile compared to Black Horse, Santander or Close Brothers. But the numbers tell a different story.
Bank of Ireland initially set aside £143 million for motor finance redress. In October 2025, following the FCA’s consultation on its proposed compensation scheme, the bank more than doubled that figure to £350 million. By December 2025, the cumulative provision had grown further — Bank of Ireland’s own reporting shows the total at approximately £370 million equivalent.
£350m+ set aside by Bank of Ireland for Northridge Finance redress
£143m the original provision — more than doubled after FCA proposals
£829 FCA estimated average payout per eligible agreement
4th largest manufacturer-independent lender provision in the UK
To put £350 million in context: it is more than Barclays Partner Finance has set aside (£325 million), more than Close Brothers (£300 million), and more than BMW Financial Services (£277 million). The only lenders with larger provisions are Lloyds/Black Horse, Santander and Mercedes-Benz Financial Services.
Bank of Ireland has also stated publicly that it does not believe the FCA’s proposed methodology reflects the actual loss to customers. This is significant — it means Northridge / NIIB is likely to scrutinise complaints carefully. Having a properly submitted, documented claim is particularly important here.
What Is a Northridge Finance Car Finance Claim?
A Northridge Finance claim is a compensation claim for being mis-sold a car finance agreement. This applies where:
- The dealer received a commission from Northridge that was not properly disclosed to you
- Your interest rate was set higher than it should have been in order to increase the dealer’s commission
- The total cost of your finance agreement was not clearly explained
- You were not made aware of the commercial relationship between Northridge and the dealer
On a typical £10,000 car finance agreement, customers may have overpaid approximately £1,100 in interest due to these arrangements. The FCA banned DCAs in January 2021, but agreements going back to April 2007 are eligible for compensation.
Three Types of Commission That May Have Affected Your Northridge Agreement
The FCA scheme covers three types of commission arrangement. Your agreement only needs to have included one to potentially be eligible.
1. Discretionary Commission Arrangements (DCAs)
Northridge allowed dealers to set or adjust the interest rate on your agreement. A higher rate earned the dealer more commission at your expense. Banned January 2021.
2. Unfairly High Commission
Even where a fixed commission was used, if it amounted to at least 39% of the total cost of credit and 10% of the loan amount, it may have been unfairly high. This applies to agreements up to November 2024.
3. Contractual Ties
If Northridge had exclusive or near-exclusive arrangements with certain dealerships, limiting the finance options they could offer you, this may also provide grounds for a claim.
Are You Eligible to Make a Northridge Claim?
| Your situation | Eligible? |
|---|---|
| Financed a vehicle on PCP or HP through Northridge Finance between 6 April 2007 and 1 November 2024 | YES |
| Personal use or sole trader (loan under £25,000) | YES |
| No longer own the vehicle | YES |
| Finance already ended or paid off | YES |
| Settled the agreement early | YES |
| No longer have original paperwork | YES — agreements can be traced |
| Northridge previously rejected your complaint | YES — re-submit under expanded FCA criteria |
| Agreement started after 1 November 2024 | NOT ELIGIBLE |
| Personal Contract Hire / leasing arrangement | NOT ELIGIBLE |
| 0% interest finance deal | UNLIKELY — check with us |
| Already received compensation for this agreement | NOT ELIGIBLE |
| Finance taken out by a limited company | NOT ELIGIBLE under FCA scheme |
If Northridge previously rejected your complaint, it is worth re-submitting. The FCA scheme now covers three types of commission mis-selling — many early complaints were only assessed against DCA criteria. Given Bank of Ireland’s public disagreement with the FCA’s methodology, re-submissions under the expanded criteria are particularly worth pursuing.
How Much Could a Northridge Car Finance Claim Be Worth?
The FCA estimates the average payout across the scheme is £829 per agreement. Here is how Northridge’s provision compares to other major lenders:
| Lender | Provisions set aside |
|---|---|
| Lloyds / Black Horse | £1.95 billion |
| Santander Consumer Finance | £461 million |
| Mercedes-Benz Financial Services | £424 million |
| Northridge Finance (Bank of Ireland UK) | £350 million |
| Barclays Partner Finance | £325 million |
| Close Brothers | £300 million |
| BMW Financial Services | £277 million |
Your individual payout depends on: the original loan amount; the interest rate you paid; the size of the undisclosed commission; the length of your agreement; and whether it falls in the 2007–2014 tranche (21% loss rate) or the 2014–2024 tranche (17% loss rate). Interest is added at Bank of England base rate plus 1%, minimum 3% per year. Each eligible Northridge agreement is a separate claim.
Key Dates for Northridge Finance CustomersApril 2007 — Eligible agreements begin
Motor finance agreements taken out from 6 April 2007 fall within the FCA redress scheme scope.
January 2021 — DCAs banned
The FCA banned discretionary commission arrangements. Northridge agreements from before this date are eligible under the DCA criteria.
January 2024 — FCA investigation launched
The FCA announces a formal investigation into historic motor finance commission practices. Northridge / NIIB Group is within scope.
October 2025 — Bank of Ireland doubles provision to £350 million
Following the FCA’s consultation paper, Bank of Ireland more than doubled its Northridge provision from £143 million to £350 million.
30 March 2026 — FCA confirms redress scheme
The FCA formally confirmed the nationwide compensation scheme. Northridge / NIIB customers with 2007–2024 agreements are within scope.
31 May 2026 — Complaints pause ends
Northridge must begin responding to outstanding complaints from this date.
30 June 2026 — Scheme opens — post-April 2014 agreements
Northridge was required under the original timetable to contact complainants within three months, with responses by 30 September 2026. That timetable is suspended and no longer applies as stated.
31 August 2026 — Scheme opens — pre-April 2014 agreements
Second tranche covers Northridge agreements from 6 April 2007 to 31 March 2014.
30 December 2026 — Northridge must contact eligible non-complainants (post-2014)
If you haven’t complained, Northridge must proactively contact you if you are potentially eligible — but complaining now is faster.
31 August 2027 — Final complaint deadline
Last opportunity to submit a complaint and be included in the scheme.
Why You Should Complain to Northridge Now — Not Wait
Northridge has publicly stated it disagrees with the FCA’s proposed methodology. This is the same posture taken by Santander — lenders who challenge the scheme’s scope are more likely to scrutinise individual claims carefully. A well-documented complaint submitted before the scheme opens gives you the strongest possible position.
Under the original timetable, complaining before 30 June 2026 placed you in the priority group with a decision due by September 2026. Those dates are suspended; Northridge is not currently required to calculate or pay compensation under the scheme.
Complaining now also means:
- You are in the faster track — ahead of customers who wait to be contacted
- Your current contact details are on record with Northridge
- You avoid the 31 August 2027 final deadline risk
- Your complaint is formally logged before any further legal challenges Northridge / Bank of Ireland may pursue
How Claims Bible Helps With Northridge Claims
Claims Bible works with specialist legal partners on a no win, no fee basis.
Step 1 — Trace your Northridge agreements
We locate all historic Northridge / NIIB Group PCP and HP agreements in your name — going back to 2007 — in under two minutes. No paperwork needed.
Step 2 — Assess your eligibility
Our legal partners review each agreement against all three FCA scheme criteria.
Step 3 — Submit your complaint
A formal complaint is prepared and submitted to Northridge Finance / NIIB Group on your behalf.
Step 4 — Receive your outcome
If Northridge rejects your complaint, your case can be escalated to the Financial Ombudsman Service for free.
Frequently Asked Questions
Who is Northridge Finance?
Northridge Finance is the consumer-facing trading name of NIIB Group Ltd, a division of Bank of Ireland UK. When you made monthly car finance payments to Northridge, your lender was technically NIIB Group Ltd. Northridge is part of the Bank of Ireland Group, headquartered in Belfast.
How much has Bank of Ireland set aside for Northridge redress?
Bank of Ireland has set aside approximately £350 million for motor finance redress through its Northridge Finance business — more than double its initial £143 million provision. By December 2025 the cumulative provision had grown to approximately £370 million equivalent. This makes Northridge one of the most heavily provisioned lenders in the scandal relative to its size.
Is Northridge Finance the same as NIIB?
Yes. NIIB Group Ltd is the registered legal entity. Northridge Finance is the trading name used for consumer car finance. You may see either name on your original paperwork, correspondence, or credit file. Both refer to the same lender and your claim can be submitted under either name.
I don’t have my Northridge paperwork. Can I still claim?
Yes. Claims Bible can trace your Northridge / NIIB agreements using a credit reference check, going back as far as 2007. No paperwork is needed to start the process.
Northridge previously rejected my complaint. Can I re-submit?
Yes. The FCA scheme now covers three types of commission mis-selling — including unfairly high commission and contractual ties. Many early complaints were only assessed against DCA criteria. A re-submission under the expanded criteria is worth pursuing.
What is the deadline to make a Northridge claim?
The deadline to submit a complaint to Northridge is 31 August 2027. Under the original timetable, complaining before 30 June 2026 (post-2014 agreements) or 31 August 2026 (pre-2014 agreements) placed you in the priority group under the original timetable. Those dates are suspended, but a complaint made now is still logged and queued if the scheme resumes.
What if my Northridge finance has already been paid off?
You can still claim. Eligibility is based on the original agreement terms, not whether the loan is still active.
Why is Northridge’s provision so large for a relatively unknown lender?
Northridge has a long history in UK motor finance and has provided agreements through dealer networks since the 1980s. The volume of agreements written over nearly two decades — covering the full 2007–2024 eligible period — is significant. The large provision reflects Bank of Ireland’s assessment that a material number of its historic agreements are likely to be eligible for redress.
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.
