Updated: 28 April 2026
Originally Published: 10 March 2025
Quick Answer
If you are asking:
How much are people getting back from Black Horse?
The Financial Conduct Authority has indicated that average compensation is around £829 per agreement [1].
However:
- this is not guaranteed
- some claims will be lower
- some may be significantly higher
The amount you receive depends on how your agreement was structured.
Introduction
For most people exploring a Black Horse finance claim, the question is immediate:
How much will I get back from Black Horse?
It is a practical question. A mis-sold car finance claim is not just about identifying whether something went wrong. It is about whether the outcome is worth pursuing.
As of April 2026, things are different.
The FCA has established a formal motor finance redress scheme. This is an industry-wide, structured process to review agreements and determine redress.
This is a significant development.
Redress is no longer determined on a standalone basis. All claims are now considered under a standardised approach across all lenders, including Black Horse.
However, one principle still applies.
Your car finance compensation depends on your agreement, not just the lender.
What the FCA Redress Scheme Tells Us About Compensation
The FCA’s final rules provide clear insight into the scale and structure of compensation.
Key figures include:
- Around 12.1 million agreements are potentially eligible
- Total industry-wide redress is estimated at £7.5 billion [2]
- Average payout is £829 per agreement
This is an increase from earlier estimates of around £695, reflecting updated assumptions under the final rules.
These numbers provide context.
They do not determine your outcome.
Each Black Horse claim is assessed individually based on pricing, commission, and transparency.
What Black Horse has set aside for potential compensation
Alongside the FCA car finance redress scheme, lenders have also made significant financial provisions in response to the car finance scandal.
Black Horse’s parent company, Lloyds Banking Group, has set aside over £1 billion to cover potential motor finance compensation claims as of early 2026 [3].
As of the time of writing, this reflects the group’s estimate of exposure across millions of agreements that may fall within the FCA redress scheme.
It is important to understand what this means in practice.
- it does not guarantee that every Black Horse finance claim will result in compensation
- it does not determine how much any individual claimant will receive
- it reflects the scale of potential redress across the market
These provisions are based on expected outcomes across a large number of agreements, rather than individual cases.
For customers, this provides context.
It shows that lenders are preparing for a structured, FCA-led compensation process, rather than treating claims purely on a case-by-case basis.
This level of provision also reinforces the scale of the issue, with millions of agreements now being reviewed under a consistent framework.
How Black Horse Finance Compensation Is Calculated
Compensation is not a flat payment.
It is based on financial difference.
This means the FCA scheme considers:
- what you paid under your agreement
- what a fair version of that agreement may have looked like
- the difference between the two
This ensures that compensation reflects actual financial impact.
What a Successful Claim May Include
If your claim is successful, your Black Horse finance compensation may include:
- refund of excess interest
- repayment of undisclosed commission
- additional interest on refunded amounts
- adjustments to any outstanding balance
- corrections to your credit file where relevant
The aim is to correct the outcome, not cancel the agreement entirely.
How the Type of Mis-Selling Affects Compensation
The FCA has identified three main categories of unfairness.
Each can influence how much compensation you receive.
Discretionary commission arrangements (DCA)
This is the largest category.
Under a DCA:
- the lender set a range of interest rates
- the dealer selected the rate
- higher rates could increase commission
Many customers were not told this.
Because it directly affects borrowing cost, this type of case often drives compensation.
The average payout for DCA cases is estimated at £810.
Contractual tie cases
These involve arrangements where a lender had exclusivity or priority in offering finance.
This can limit genuine comparison.
The issue is not just commission, but whether the structure restricted choice.
The average payout for contractual tie cases is estimated at £807.
High commission cases
These involve unusually high commission levels.
Defined as:
- at least 39% of total cost of credit
- and 10% of the amount borrowed
These cases are less common but can result in higher payouts.
The average payout for high commission cases is estimated at £1,203.
Why Compensation Amounts Vary
Even within the same category, payouts vary.
This is because every agreement is different.
Key factors include:
Loan size
Larger agreements typically lead to higher potential refunds.
Agreement length
Longer terms allow financial differences to build over time.
Interest rate
If the rate was higher than it should have been, this may increase compensation.
Commission influence
Where commission played a stronger role, compensation may be higher.
Type of agreement
Many PCP claims involve more complex structures, which can increase impact.
Understanding PCP Refunds
A large number of Black Horse car finance claims relate to PCP agreements.
PCP deals are popular because they:
- offer lower monthly payments
- include flexibility at the end
- allow vehicle changes
However, they also:
- rely heavily on interest rate assumptions
- include a final balloon payment
- can obscure total cost
If commission influenced the interest rate, even slightly, the total cost could increase significantly.
This is why PCP refund claims are so common in 2026.
FCA Scheme Timelines and Average Payouts
The FCA has split the scheme into two periods.
Scheme 1
- Agreements from 6 April 2007 to 31 March 2014
- Older agreements
- May take longer to process
Average payout: £734
Scheme 2
- Agreements from 1 April 2014 to 1 November 2024
- More recent agreements
- Expected to be processed sooner
Average payout: £881
Key deadline
- Final deadline to claim: 31 August 2027
When Is Black Horse Paying Out?
There is no fixed date.
However, based on the FCA scheme:
- claims are expected to be processed during 2026 and 2027
- payouts 2026 are expected to begin as reviews progress
- not all claims will be processed at the same time
Timing depends on:
- your agreement
- claim volume
- complexity
Interest on Compensation
Compensation includes interest.
The FCA has set:
- Bank of England base rate + 1%
- with a minimum of 3% per year
This adjustment is one reason the average payout increased.
Why Not Everyone Will Receive Compensation
Not all agreements qualify.
The FCA has tightened eligibility.
This is why:
- estimated eligible agreements reduced from 14.2 million to 12.1 million
Some agreements are excluded, including:
- very low commission cases
- agreements with no financial disadvantage
- clearly explained agreements
The FCA’s position is clear:
Consumers should not be put in a better position than if they had been treated fairly.
In some cases, compensation may also be capped.
Example Compensation Scenarios
Example 1. Smaller agreement
- £8,000 loan
- shorter term
Outcome:
- smaller refund
- limited financial difference
Example 2. Typical PCP agreement
- mid-sized loan
- longer term
- moderate commission impact
Outcome:
- refund of excess interest
- compensation close to average
Example 3. High commission case
- larger loan
- strong commission influence
Outcome:
- significantly higher payout
- above average compensation
What Happens After a Successful Claim
If your Black Horse claim is successful, you will receive:
- a breakdown of compensation
- explanation of calculation
- payment or account adjustment
If you disagree with the outcome, you can:
- challenge the decision
- escalate to the Ombudsman
Can You Maximise Your Compensation
You cannot increase compensation artificially.
However, you can ensure your claim is assessed properly by:
- providing accurate information
- responding promptly
- reviewing the outcome carefully
Should You Use a Finance Claims Expert?
You do not need one.
However, some people choose a finance claims expert where:
- they have multiple agreements
- records are incomplete
- the case is complex
They help manage the process, but they do not affect the outcome.
Frequently Asked Questions
How much are people getting back from Black Horse?
The FCA has said the typical payout is about £829 per agreement. However this is an average figure, some claims will attract lower payouts and others higher, depending on how much commission was earned in each case and the size and term of the agreement. Individual assessment of Black Horse finance claims will be made under the FCA scheme.
How much will I get back from Black Horse?
There is no set amount.
How much you receive will depend on a range of factors such as how big your loan was, what interest rate you paid, the role of commission and the term of the agreement. The FCA scheme will look at what you paid and how a fair agreement may have looked and work out the difference.
When is Black Horse paying out?
There is no universal payout date.
Claims under the FCA redress scheme will be processed over the course of 2026 and 2027. Payouts 2026 are likely to start soon as agreements are checked, but there will be variations in timing.
This will depend on a range of factors, including:
- which scheme your agreement was made under
- the number of other claims being processed
- the complexity of your claim
Generally, agreements under Scheme 2 (2014 to 2024) will be processed earlier than those under Scheme 1 (2007 to 2014), as it is harder to find and access old records.
For this reason, some customers will be paid earlier than others, even if they submit their claims at a similar time.
Will all PCP claims qualify?
No. Not all PCP claims will be successful. All PCP claims are assessed on a case-by-case basis, taking into account how the PCP was agreed and explained. Some PCPs will be outside the FCA scheme or there may not be evidence of clear financial detriment.
Can I still make a claim if my agreement has finished?
Yes.
You can still make a claim on an agreement that has ended, been terminated early, or where the vehicle has been sold. The FCA scheme will look at how the agreement was structured at the point when it was taken out, rather than if it is still open or not.
Will I definitely get compensation?
No.
Compensation is only awarded where the FCA criteria for unfairness is met. This means your agreement must be able to demonstrate that you were financially disadvantaged as a result of various factors e.g. undisclosed commission or transparency. Some claims will not receive a payout.
Do I need to know if commission was used in my agreement?
No.
The vast majority of customers were not made aware if commission was used or not. You do not need to have known or to try and identify if commission was used in your case. As part of the FCA scheme, the lender will review the agreement to identify whether commission was used and whether it impacted the outcome of the agreement.
Will a claim have an impact on my credit score?
No.
Submitting a claim on car finance mis-selling does not impact your credit score or your current financial standing. In fact, if your claim is successful you may see certain updates to your credit file where appropriate.
How do I know if I'm eligible for a refund?
The easiest way is to do a car finance refund check.
This will allow you to see if your agreement could fall under the FCA scheme and if you'd like to go ahead and make a full car finance refund or PCP refund claim. You don't need full details to get started.
When is the deadline to claim?
The current deadline to make a claim under the FCA redress scheme is 31 August 2027.
It's usually better to get started sooner rather than later as claims are dealt with over time and could be affected by backlogs.
Do I need to use a finance claims expert?
No, you do not need one to make a claim.
Some people do use a finance claims expert or claims management company if they want assistance through the process, finding agreements or managing communications. They can make things easier, but they do not have any impact on the outcome of your claim.
What to Do Next
If you are considering a Black Horse finance claim, the next step is simple.
Understand your position.
You can:
- use a car finance refund check
- review your agreement
- decide whether to proceed
The 2026 framework provides clarity.
The next step is not guessing.
It is checking.
_________
References:
- The Financial Conduct Authority has indicated that average compensation is around £829 per agreement -https://www.fca.org.uk/publication/policy/ps26-3.pdf
- Total industry-wide redress is estimated at £7.5 billion - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
- Lloyds Banking Group, has set aside over £1 billion to cover potential motor finance compensation claims as of early 2026 - https://www.thebanker.com/content/29f463e3-f509-4ca6-8f90-1d1873541f05