Updated: 22 October 2025

Originally Published: 28 February 2025

If you have taken out car finance in the past 17 years from Black Horse Finance, then you could be in line for a payout. Thousands of UK drivers were mis-sold car finance due to undisclosed commissions and other unfair sales practices. This guide will show you how to make a claim against Black Horse Finance, check if you are eligible to claim, and prepare your documents for the best possible result.

The Financial Conduct Authority (FCA) has proposed a new national compensation scheme to refund drivers who were mis-sold car finance agreements. It follows years of investigations into how lenders and brokers arranged discretionary commission deals where salespeople could raise your interest rate to increase their own earnings.

According to finance claims experts, acting early and preparing your documentation carefully improves your chance of success. Here’s everything you need to know.

Step 1: Can You Claim Against Black Horse Finance?

Before filing your complaint, assess whether your agreement was unfair. You may be eligible for a Black Horse claim if:

• You were charged higher interest rates than expected.
• Your broker received undisclosed high commissions.
• You were not fully informed about repayment terms, balloon payments, or mileage restrictions.

In August 2025, the Supreme Court ruled that the mere presence of commission does not make a car finance deal unlawful [1]. However, if a broker inflated your rate or failed to disclose a discretionary commission, your agreement could still be classed as unfair. Even if your contract has ended, you can still make a claim.

Step 2: Gather Your Supporting Documents

Evidence: the stronger the better. Keeping the paperwork and producing a paper trail is in your favour. The FCA and the lenders will want written evidence before they take any refunds seriously. Documents that may help your case include: 

• Copy of your Black Horse Finance Agreement. This will show your rate of interest, any commission details, and the period of repayment.
• Statements of the loan showing payments and any overcharges.
• Emails or messages from the Dealer/broker referring to any of the areas above, i.e. rates, fees or commissions. 
• Evidence of financial hardship. If you are able to show that the high rate of interest has caused you financial hardship, then show bank statements or credit score evidence.

If you have kept a good paper trail of evidence, it is in your favour and will make it easier for the lender or FOS to substantiate your claim.

Step 3: How to File a Complaint

To begin your Black Horse finance claims process, submit an official complaint directly to the lender. Be clear why your finance deal was mis-sold car finance, for example, not being told about hidden commissions or having your interest rate inflated by a broker. 

You can make your complaint by: 

• Online: Complete the Black Horse online claims form [2] and upload your documents for a quicker response.
• By post: Send a letter stating the details of your complaint, with all the evidence you have, by recorded delivery.
• By phone: You may call customer service, but always follow up in writing for proof of submission.

Black Horse usually has eight weeks to reply, though the FCA paused the processing of complaints until 4 December 2025 [3] while reconsidering whether it will extend this complaint-handling deadline to finalise a fair, industry-wide solution.

Step 4: If Black Horse Rejects Your Claim

A rejection does not mean the end of your case. You have the right to escalate your complaint to the Financial Ombudsman Service (FOS) if:

• Black Horse fails to respond within the allowed timeframe; or
• Their response is unsatisfactory or dismissive.

Before contacting the FOS, make sure your documents are organised: your finance contract, loan statements, your original complaint, and any communications from Black Horse. Submit your complaint through the FOS website, explaining how the agreement was mis-sold and the financial loss you suffered.

The investigation may take several months. Once completed, the Ombudsman will issue a decision. If both sides agree, the matter is closed. If not, it moves to a final ruling.

If your claim is rejected by the Ombudsman you can use a Black Horse refund checker to reassess your eligibility to see if legal action would be viable. It may also be worth speaking to a regulated claims management company which can advise on options and the value of any potential compensation.

FCA’s Proposed Nationwide Redress Scheme (2025 Update)

In October 2025, the FCA set out plans for a major redress programme which could see millions of drivers refunded if they were mis-sold car finance agreements [4]. The programme will apply to agreements made between 6 April 2007 and 1 November 2024.

The regulator found that many customers were charged extra because brokers had the power to raise rates for personal gain, creating unfair relationships. Having reviewed over 32 million finance agreements, the FCA estimated that around 14 million could be eligible for a refund of, on average, £700 per customer, totalling more than £8 billion in repayments [5].

Subject to the usual regulatory processes, the scheme will open for claims from early 2026. Customers will not need to take legal action themselves as lenders will be expected to identify and compensate eligible customers.

Types of Unfair Commission Arrangements

The FCA found three broad categories of unfair finance practices that are eligible for refunds:

1. Discretionary Commission Arrangements – Brokers upped your interest rate to receive a higher commission.
2. High Commission Arrangements – Commissions over 35% of the cost of credit, or 10% of the loan amount, which weren’t disclosed.
3. Exclusive Lender Ties – Brokers limited your choice by only providing you with one lender's deals, making you believe you were being offered the “best available” finance when this was not the case.

If your contract included any of the above without being made explicitly clear, then you are very likely to have a Black Horse claim.

Expected Payouts and Redress

Typical compensation from Black Horse Finance may be £700, depending on your loan details, commission amount, and interest rate. You can estimate your refund using our Black Horse refund checker/guide.

The FCA expects around 85% of eligible consumers to take part in the redress programme. Even with lower participation, total payouts could exceed £6.8 billion, making it one of the largest consumer compensation efforts in UK history.

What Happens Next

The FCA’s consultation period is open until 18 November 2025, with final rules expected by early 2026. If confirmed, lenders such as Black Horse will start issuing payments later in 2026.

Leasing agreements are excluded, but Hire Purchase (HP) and Personal Contract Purchase (PCP) contracts fall within the scheme’s scope.

Final Advice: Don’t Wait to Check Your Eligibility

Think your car finance was mis-sold? Organise your paperwork, make a complaint and get advice from a car finance claims expert if needed. Apply early to avoid missing out on any future deadlines when the FCA’s scheme launches. 

To understand how mis-selling works and what evidence matters most, explore more about Black Horse finance claims to see if your agreement qualifies.

Taking early steps now could help you secure the refund you deserve and hold lenders accountable for unfair financial practices.

FAQs 

Can I claim against Black Horse Finance? 

Yes. If you took out a PCP or hire purchase agreement with Black Horse Finance between 2007 and 2024, and it included a hidden or unfair commission, you may be eligible to make a claim. These claims form part of the wider UK car finance scandal, which is being reviewed by the Financial Conduct Authority (FCA).

How much can I claim from Black Horse Finance?

The FCA has advised that the average discretionary commission payout is around £700 per agreement.

Can I claim against Black Horse Finance if I’ve already completed my PCP?

Yes, even if your Black Horse PCP agreement has come to an end, you may still be able to make a claim.

What if Black Horse Finance rejected my claim?

If Black Horse Finance has rejected your claim, you are entitled to refer it to the Financial Ombudsman Service.

Do I need a professional to make a claim against Black Horse Finance?

It is not necessary to use a professional when making a claim; you can do this yourself. However, some individuals prefer the help of a regulated claims management company.

_________

References:

1. In August 2025, the Supreme Court ruled that the mere presence of commission does not make a car finance deal unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. Black Horse online claims form - https://www.blackhorse.co.uk/help/complaints.html
3. the FCA paused the processing of complaints until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
4. In October 2025, the FCA set out plans for a major redress programme which could see millions of drivers refunded if they were mis-sold car finance agreements - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
5. Having reviewed over 32 million finance agreements, the FCA estimated that around 14 million could be eligible for a refund of, on average, £700 per customer, totalling more than £8 billion in repayments - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme