Updated: 15 October 2025

Originally Published: 10 March 2025

If you took out car finance from Black Horse at any time in the last 17 years, you could be owed money. Thousands of people have been mis-sold, including hidden commissions and overcharged interest rates. The Financial Conduct Authority (FCA) is now proposing a nationwide redress scheme [1] to refund consumers affected by these unfair practices. Understanding how much are people getting back from Black Horse and how much will I get back from Black Horse depends on several factors, including your loan terms, interest rates, and the level of undisclosed commissions.

The new scheme is in response to a recent Supreme Court judgement in August 2025 [2]. The Court ruled that lenders whose commissions were high but not disclosed to customers, and who had close links with brokers, were treating customers unfairly. The FCA consultation closes on 18 November 2025, with the scheme expected to be in place from early 2026. Typical redress could be expected to be around £700 per agreement [3], although redress amounts will vary on a case by case basis.

Understanding Black Horse Finance Compensation

Black Horse finance compensation typically involves:

1. Refund of Excessive Interest Payments – If undisclosed commissions caused your interest rate to be higher than market norms, you are eligible to recover the overpaid interest.
2. Removal of Discretionary Commission Charges – Brokers or dealerships may have added hidden fees to increase earnings. Compensation often eliminates these charges.
3. Loan balance adjustment – If you have an ongoing loan, the rebate can be used to reduce your loan balance, future repayments or both, or to repay the loan early. If the loan has already been paid off, the refund is generally made as one final payment.

These changes have been made to ensure that borrowers are not short-changed for the mis-sold financial products.

For detailed guidance, explore Black Horse finance claims.

Factors that Impact the Value of Your Refund

Many factors determine the value of what you can get back from Black Horse:

1. Duration of the Loan

The longer your loan, the higher the unfair charges paid. For example, a five-year finance agreement is likely to yield a higher value refund than a three-year finance deal.

2. The Interest Rate

The higher the interest rate applied, the more likely it is that you have been overpaying with hidden charges and mis-selling. Assessing your interest rate against a base rate helps to determine the extent of overpayment.

3. Scope of the Claim

Redress may take the form of:

• A lump sum cash repayment for overpayments in the past – covers excessive interest and charges that have been paid
• Reduced future payments – the balance due is reduced to remove overpayments
• Both of the above – in certain cases this may also be possible.

Understanding the scope helps set realistic expectations and maximise your payout. For more information on mis-sold deals, see What to Know About Recovering Car Finance Compensation for Mis-Sold Deals.

4. Strength of Evidence

Submitting as many documents as possible is in your favour. Useful documents for evidencing your claim include:

• Original finance agreement
• Repayment statements
• Dealer or lender communications

Even if some documents are missing, lenders must provide copies upon request. Submitting complete evidence reduces processing time and ensures accurate compensation.

How to Maximise Your Black Horse Finance Claim

Gather Essential Documents

The strongest claims rely on clear records of your loan, interest, and commission charges. If needed, request a Subject Access Request (SAR) from Black Horse to obtain missing documents.

Appeal Unfair Low Offers

Lenders can offer you less than you are entitled to. Look out for:

• Offers that do not include undisclosed charges or overpaid interest
• Claims calculations that do not match your actual contract
• Old or incorrect data used to calculate your compensation

Borrowers can appeal against these unfair offers. They can then take their complaints to the Financial Ombudsman Service (FOS).

Get Professional Assistance

It may be worthwhile to seek the services of a PCP claims expert, especially in more complex cases or where hidden commissions or inflated interest is involved. A claims expert can:

• Confirm whether the full amount of redress is being offered
• Negotiate with lenders on your behalf to obtain higher payouts
• Ensure all legal criteria are met with regards to claims

For guidance on professional assistance, see Black Horse claims.

FCA Car Finance Redress Scheme – Latest Updates [4]

The FCA consultation paper on this initiative is seeking views on how best to design a fair, nationwide scheme that would cover agreements entered into between 6 April 2007 and 1 November 2024, and would include both HP and PCP agreements. The total number of agreements that could be eligible for the scheme could be around 14 million, with average payouts being around £700. Depending on participation, total compensation could reach £8–£9.7 billion. Including operational costs, the FCA estimates the scheme could cost around £11 billion, making it one of the largest consumer redress efforts in UK history.

The FCA is also consulting on extending the complaint-handling deadline for motor finance firms until 31 July 2026. Note that car leasing complaints are excluded from this extension.

FAQs

Do I need my car registration or finance paperwork to claim?

No. Most lenders can locate your agreement using personal details.

What if my lender has gone out of business?

The FCA redress scheme is expected to cover claims even if the lender no longer operates.

Will claims be automatic?

The October 2025 FCA consultation outcomes will determine if claims are opt-in or automatic.

How much compensation could I get?

It depends on how much extra interest you paid. Average payouts could be around £700.

How can I increase my payout?

Submit complete documentation, challenge low offers, and consider consulting a PCP claims expert.

Key Takeaways

• Millions of drivers may be owed refunds due to undisclosed commissions and inflated interest rates.
• How much are people getting back from Black Horse varies, but average payouts could be substantial.
• Factors like loan term, interest rate, claim scope, and supporting evidence determine your compensation.
• The FCA redress scheme, following the Supreme Court ruling, will standardise claims and payouts.
• Taking proactive steps and, where necessary, consulting experts can maximise your refund.

Check your eligibility and start your claim today to secure the compensation you deserve.

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References:

1. The Financial Conduct Authority (FCA) is now proposing a nationwide redress scheme - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. recent Supreme Court judgement in August 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. Typical redress could be expected to be around £700 per agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
4. FCA Car Finance Redress Scheme – Latest Updates - https://www.fca.org.uk/publication/consultation/cp25-27.pdf