How Much Will I Get Back from Black Horse? Compensation Explained

Guide 21 August 2025

headshot of Chris Roy, Product and Marketing Director of Reclaim247 Chris Roy
How Much Will I Get Back from Black Horse? A Helpful Guide

Updated: 21 August 2025

Originally Published: 10 March 2025



Thousands of Black Horse customers reported receiving dishonest sales treatment, including hidden commissions together with unfavourable interest costs. Could you be one of them? 

Your compensation amount depends entirely on your ability to understand the refund methods of Black Horse. The total sum of compensation depends upon multiple conditions which result in payments, varying between small and substantial amounts. Different variables determine your compensation level, including interest terms and discretionary commission rules. This guide breaks down how Black Horse calculates refunds, what affects your Black Horse finance claim, and how to maximise your compensation.


How much will I get back from Black Horse?

Compensation from Black Horse Finance consists of the reimbursement of all the detected unfair financial procedures in your contract. In this case, Black Horse customers had to pay additional interest charges because the company did not show its optional commission details. The process involves returning extra interest to clients and debt value modifications. Many customers now seek reimbursement of expenses from their loan period due to undisclosed fees.

Finance claims experts informed the public about the harmful outcomes that Black Horse customers experienced from incorrect sales methods. Finance experts on Black Horse claims reveal that borrowers gave extra payments because their commission fees remained undisclosed. This reveals that consumers need monetary actions to rectify financial wrongs.

The Financial Conduct Authority (FCA) is investigating a refund procedure framework because it detected numerous instances of wrongful selling by financial institutions. In August 2025, the Supreme Court’s ruling [1] clarified part of the mis-selling problem. With an FCA redress scheme consultation scheduled for October 2025 [2], this is the perfect time to understand your rights. But the FCA suggests that the average payouts could reach £950 per eligible agreement [3]. 

Nevertheless, the total amount of borrower compensation depends on several factors for calculation:


Refund of Excessive Interest Payments

Delivery of Black Horse compensation involves returning funds resulting from interest payments that exceed fair rates. Agreements governing finance included interest rate charges that were excessively high because of undisclosed commission payments. Loaned customers paid a larger sum than necessary because hidden interests were factored into their loan terms.

Under Black Horse compensation, the lender must pay back the additional interest charges. Your refund amount depends on the amount exceeding the fair market interest rate. 


Removal of Discretionary Commission Charges

The extra fees called discretionary commission charges stem from dealerships or brokers who structure them to push their earnings higher. Several undisclosed processing charges existed within consumer transactions. In these cases, borrowers found it difficult to comprehend the true added expense. 

Borrowers were required to pay much higher costs as a result of this lending method. Compensation calculations normally eliminate these charges through reimbursement of overpaid amounts.


Adjustment of Remaining Loan Balance

Compensation for Black Horse customers who keep paying their existing finances may include changes to the amount left on their loan. Customers receive their compensation by paying down their existing balance instead of getting a single check payment.

The result of these reductions would mean either lower follow-up loan payments or an early settlement opportunity with decreased costs. The final months of borrowers approaching loan maturity typically result in refund payments and adjustments to loan balances.


Factors Affecting Compensation Amounts

Each Black Horse finance compensation claim is evaluated based on various aspects that determine the specific amount a claimant will get. Your compensation amount may differ from another borrower, although you share similar finance agreements. This is because your loan terms, interest rates, and mis-selling extent vary. Understanding what to know about recovering car finance compensation for mis-sold deals helps victims establish practical case objectives and create more effective claims.


Loan Term

When determining compensation amount, a key factor is the length of time your car finance extends. A longer duration of the loan gradually builds larger unfair expenses during its lifetime. Each day you remain in your agreement increases the harm of hidden fees you encounter because of unfair practices. A five-year financing period produces substantially higher costs than what is found in a three-year agreement. The duration of your loan requires understanding because it affects how greatly mis-sold conditions affect your money management.


Interest Rates

Your compensation amount will be greatly influenced by the interest rate you receive for your car finance. Unfavourable interest rates will intensify both hidden costs and incorrect sales methods which persist through your loan period. Excessive interest rate charges may result in large refunds. Additionally, the analysis of your interest rate compared to standard market rates will demonstrate issues that create the foundation for your claim. Therefore, understanding your interest rate completely enables you to determine the correct amount of compensation you should receive.


Scope of the Claim

Your knowledge is important when addressing misleadingly marketed loan agreements. It will decide if you are eligible for a check from the bank refunding unjustified past charges, a reduction of future payments, or some combination of the two. Here are a few things to consider.

  • Cash Reimbursement for Past Overdraw: The policy is in place to address complaints for the purpose of reimbursing previously paid expenses with a single payment.
  • Reduced Future Payments: Loan modification also reduces the outstanding debt as well as the amount of future payments.
  • Double Dip: It is possible (under certain conditions) to both receive a refund for overpayments already made as well as lower future payments all while your loan is still in effect.
  • Singular Remuneration for Completely Repaid Loans: When the loan has been paid back in full, it results in one final straightforward payment which does not affect forthcoming payments.

Comprehending the scope of your claim results in practical expectations and helps you in deciding whether to pursue a cash refund, a decrease in forthcoming installments, or both. This information is crucial to handling the claims process and securing the refunds you deserve.


Strength of Evidence Submitted

The level of documentation submitted with a claim directly impacts how much payout will be received. Strong evidence is paramount for both Black Horse and the Financial Ombudsman Service (FOS) to demonstrate mis-selling during compensation assessment. The evidence needed includes agreements, repayment proof, and documents from dealerships.

Detailed documentation supports your claim while shortening the claims processing time. When borrowers present their complete records to the evaluators, they obtain correct compensation evaluations that guarantee they recover their entire entitled sum.


How to Maximise Your Compensation

Specific planning and decisive methods are necessary to ensure you obtain the monetary return. Compensation values differ greatly between claim presentations and the determination of borrowers to dispute unfair offers. Proper steps followed by claimants boost the odds of obtaining a beneficial compensation payment.


Gather Key Documents to Strengthen Your Claim

The most significant aspect of successfully submitting a Black Horse finance compensation claim is the evidence that you have. Without a paper trail, it can be hard to demonstrate mis-selling or the grounds for the size of the requested compensation.

The main documents that support a claim are:

  • Original financing agreement – This includes key information about the loan such as the interest amount, whether there were optional commissions applied, and any additional fees applied.
  • Repayment statements – These detail how much was ultimately repaid and when which assists in determining the level of any overcharging in interest or other hidden charges.
  • Dealer or lender communications – Any emails, letters, or promotional materials that mention interest rates, commissions, or sales tactics used can be helpful to bolster a mis-selling claim.

Even if a borrower lacks some of these documents, a claim can still be filed. Lenders must give copies of agreements on request and you can request a Subject Access Request (SAR) from your finance provider. If circumstances are in your favour, you stand a better chance of receiving the appropriate amount of damage claim.


Challenge Unfair Settlement Offers

Not all offers of compensation accurately represent what a borrower is owed. Sometimes, lenders propose lower settlements than expected. Here are some scenarios to look out for:

  • You may find that the proposed refund fails to adequately reimburse excessive interest charges or hidden fees. Key aspects are sometimes excluded, resulting in repayment lower than what is deserved.
  • The lender may base calculations using interest rates or loan terms inconsistent with the actual contract, reducing the total amount that should be reimbursed. Questionable math can shortchange the borrower of sums rightfully owed.
  • A quick settlement offer may seem promising initially, but obscures critical details upon inspection. For example, administrative charges or interest accrued on overpayments are sometimes omitted from calculations in a way that deprives the borrower of full redress.
  • You could discover that the refund rationale relies on outdated or inconsistent information. Using flawed data can dramatically undercut the precise compensation deserved according to the terms of the agreement.

When the compensation offer appears to be low, you must:

  • Compare the offer with similar claims — it's always worthwhile to compare notes with other claimants as to whether the amount you are offered is reasonable.
  • Ask for a detailed building of calculations — Lenders must tell you exactly how they computed their compensation figure. If the important components are left out, they will need to be examined in greater depth.
  • Formally challenge the offer – If the claim has not been dealt with correctly, borrowers can take their complaints to the Financial Ombudsman Service (FOS).

Countering a bad offer takes time but can bring much larger refunds. Some borrowers whose complaints made it to the Ombudsman have received two or three times what lenders initially offered.


Get Help From a PCP Claims Expert

Cases of hidden commissions and exorbitant interest rates can be complicated. Having an expert look over the case can help make sure nothing is missed.

A financial expert or claims management expert can:

  • Determine if you have been offered the full amount of compensation – Some lenders may tend to only pay on some elements of a mis-sold loan. In reality, you may have paid more in unfair charges.
  • Managing negotiations and disputes – Experts are skilled in interfacing with finance providers and can negotiate for larger payouts where necessary.
  • Make sure claims meet legal standards – An appropriately prepared claim minimises the likelihood of unnecessary delays or rejections.

People in basic situations can handle their cases alone, while those with complex matters require expert help. When claimants consult qualified professionals, their compensation funds have a higher chance of reaching the maximum available amount.


Conclusion

You might be owed thousands of compensation due to a  Black Horse mis-sold finance agreement. You need to check your eligibility without delay because your claim could result in interest refund payments, hidden charge eliminations, or a reduction in the amount you owe. 

Start your claim today to get the compensation you deserve.


FAQs

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

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

What if my lender has gone out of business?

The FCA’s redress scheme is expected to address claims even where the lender no longer operates.

Will claims be automatic?

The FCA consultation in October 2025 will decide if claims are automatic or require an opt-in.

How much compensation could I get?

It depends on how much extra interest you paid, but average payouts could be around £950.




_________

  1. Supreme Court’s ruling - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
  2. FCA redress scheme consultation scheduled for October 2025 - https://www.fca.org.uk/news/statements/fca-consult-compensation-scheme-motor-finance-customers
  3. average payouts could reach £950 per eligible agreement - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator

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1 Where No Win, No Fee is offered - You pay nothing unless your claim is successful. A fee between 18 - 36%, including VAT applies on successful claims (fee dependent on level of redress secured), and a cancellation fee may apply outside the 14 day cooling-off period.

3 All figures disclosed on the results page of our form are based on the £950 figure the FCA has stated to be the amount that each claim could be worth.

4 Free Online Checker refers only to the live soft-credit check completed online to identify your car finance agreements.

5 All three examples of compensation clients have received are examples from our working partners Bott&Co. These claims were all won before the FCA’s pause on motor finance claims.