Updated: 10 August 2026
Originally Published: 10 March 2025
Quick Answer
If you're wondering how much are people getting back from Black Horse or how much will I get back from Black Horse, there isn't a fixed compensation amount for every customer.
The Financial Conduct Authority (FCA) estimates eligible motorists could receive around £829 on average under its proposed motor finance compensation scheme [1]. However, this is only an average. Some successful Black Horse finance claims may result in lower compensation, while others could receive considerably more depending on the individual finance agreement.
Although compensation has been delayed by ongoing legal challenges, motorists can still start a mis-sold car finance claim and check whether their agreement may be eligible.
Black Horse Compensation at a Glance
- Estimated average compensation: Around £829 per eligible agreement
- Is everyone paid the same?: No. Every agreement is assessed individually.
- What affects compensation?: Loan amount, agreement length, commission arrangements and overall financial impact.
- Current position: Car finance claims can still be started while legal proceedings continue.
- When is Black Horse paying out?: Payments are now widely expected during 2027, subject to the Tribunal outcome.
- Proposed FCA deadline: 31 August 2027
Introduction
If you're thinking about making a Black Horse finance claim, chances are your first question is simple:
How much could I actually get back?
It's a fair question, but there isn't a straightforward answer.
Unlike fixed compensation schemes, Black Horse finance compensation isn't based on a standard payment. Instead, every agreement is reviewed individually to determine whether the customer paid more than they should have because of the way their finance was arranged.
The FCA has published an estimated average compensation figure, but the amount any individual receives will depend on the details of their agreement.
This guide explains what could affect your potential compensation, why PCP claims receive so much attention, what Lloyds Banking Group has said about the cost of compensation, and when eligible motorists could expect payments.
If you're unsure whether your agreement could qualify, our guide to Understanding Black Horse Finance Claims explains the eligibility criteria in more detail.
How Is Black Horse Compensation Worked Out?
There isn't a standard compensation payment for every successful Black Horse finance claim.
Rather than apply a standard formula, the proposed FCA car finance redress scheme assesses each agreement on its own merits to see whether the customer overpaid as a result of how the finance was arranged.
Some of the elements that may affect the eventual payout include:
- how much was borrowed
- the duration of the agreement
- the amount of interest charged
- the impact that commission had on the total cost of borrowing
- the total financial impact on the customer
This is why two motorists with similar vehicles could receive different amounts of Black Horse finance compensation.
If your claim is successful, compensation could include a refund of excess interest or commission, together with any interest added under the FCA's proposed scheme.
What Has Black Horse Set Aside for Compensation?
Black Horse is part of Lloyds Banking Group, one of the lenders most heavily affected by the UK's car finance scandal.
In response to the FCA's proposed compensation scheme, Lloyds has continued to increase the amount it has set aside for potential motor finance redress. The banking group has now earmarked more than £1 billion to cover expected compensation costs across its motor finance businesses [2].
While this highlights the scale of the issue, it doesn't mean every Black Horse finance claim will be successful or that everyone will receive the same amount.
The provision is intended to cover the group's potential exposure across millions of finance agreements. Individual compensation will still depend on the circumstances of each agreement and the outcome of the FCA's review.
Are PCP Agreements Paid More?
The majority of Black Horse finance claims are for mis-sold PCP car finance, one of the UK’s most popular methods of financing a vehicle.
But just because you have a PCP agreement doesn’t mean you’re automatically entitled to a higher PCP refund.
The FCA doesn’t operate a separate compensation scale for PCP finance claims. All agreements are individually assessed, using the same principles.
That said, PCP agreements often involve larger borrowing amounts and longer repayment periods. Where customers paid more because of the way the agreement was arranged, some PCP compensation claim values may be higher than shorter-term agreements. However, this isn't guaranteed.
If you can't remember whether your agreement was PCP or Hire Purchase, don't worry. Your finance agreement, lender correspondence or credit report can usually confirm this. If you've lost your paperwork, a finance claims expert may be able to help locate historic agreements as part of a car finance refund check.
When Is Black Horse Paying Out?
One of the most common questions motorists are asking is "when is Black Horse paying out?"
At the moment, there isn't a confirmed payment date.
Although the FCA published its final compensation scheme earlier this year, several lenders have challenged parts of the proposals through the Upper Tribunal [3]. As a result, implementation of the scheme has been partially suspended while those legal proceedings continue.
The original payouts 2026 timetable is therefore no longer expected to be met. Instead, eligible compensation payments are widely expected to begin during 2027, depending on the outcome of the Tribunal proceedings and any further FCA announcements.
Importantly, motorists don't need to wait for those proceedings to finish before checking whether they may have an eligible agreement.
Should You Wait Before Making a Claim?
In most cases, no.
Starting a car finance refund check now can help establish whether your agreement may fall within the FCA's proposed compensation scheme. It may also make it easier to trace older finance agreements while records remain available.
If you'd like help understanding the claims process, read our guide to How to Claim Against Black Horse Finance.
Frequently Asked Questions
How much are people getting back from Black Horse?
The FCA estimates eligible motorists could receive around £829 on average. However, compensation varies depending on the individual agreement and isn't guaranteed.
How much will I get back from Black Horse?
There isn't a fixed amount. Your potential compensation depends on how your agreement is assessed under the FCA's proposed redress scheme.
When is Black Horse paying out?
We currently have no information on a set payment date. The expectation now is that payment will be made during 2027 depending on the outcome of the current legal process.
Can I still make a claim if I've finished my finance?
Yes. Even if your finance has ended you may still be able to make a car finance claim as long as your agreement falls within the FCA's proposed eligibility criteria.
Will all PCP claims be compensated?
No. All PCP claims will be judged on their individual merits. Just because you have a PCP agreement does not mean that you will be entitled to a PCP car claims compensation.
Will making a claim affect my credit score?
No. Making a car finance compensation claim or completing a PCP claim check doesn't affect your credit rating.
How do I check if I'm eligible?
A car finance refund check is often the quickest way to establish whether your agreement may qualify. Even if you've lost your paperwork, historic agreements can often still be traced.
Do I have to use a finance claims expert?
No. You can complain directly to Black Horse if you wish. Some motorists choose to use a finance claims expert for assistance with tracing agreements and managing the claims process.
What Should You Do Next?
If you're asking how much will I get back from Black Horse, the reality is that nobody can give an exact figure until your agreement has been reviewed.
What we do know is that the FCA has proposed a compensation scheme designed to assess each agreement individually, while Lloyds Banking Group has already set aside significant funds in anticipation of future claims. Although legal challenges mean payments are now expected to begin in 2027 rather than 2026, eligible motorists can still start the process today.
If you think you may have been affected by car finance mis-selling, carrying out a car finance refund check is a sensible first step. It can help you understand whether your agreement may qualify and what your options are moving forward.
For a practical walkthrough of the claims process, read our guide to How to Claim Against Black Horse Finance.
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References:
- The Financial Conduct Authority (FCA) estimates eligible motorists could receive around £829 on average under its proposed motor finance compensation scheme - https://www.fca.org.uk/publication/policy/ps26-3.pdf
- The banking group has now earmarked more than £1 billion to cover expected compensation costs across its motor finance businesses - https://www.thetimes.com/business/companies-markets/article/lloyds-banking-group-car-loan-compensation-redress-0xtvmkpvz
- several lenders have challenged parts of the proposals through the Upper Tribunal - https://consumervoice.uk/cars/fca-car-finance-compensation-challenge/