Updated: 03 September 2025

Originally Published: 18 October 2024

Northridge Finance, part of the NIIB Group, has been providing car loans in the UK for many years. Through Northridge car finance, customers have signed up for PCP (Personal Contract Purchase) and HP (Hire Purchase) deals, designed to spread the cost of buying a car.

As part of the wider car finance scandal, investigations have found that thousands of drivers across the country may have paid more than they should because of hidden commissions, unclear terms or inflated interest rates. You may be able to push for a Northridge finance claim if you meet the eligibility criteria below.

Why Are People Making Northridge Finance Claims?

For several reasons, drivers are pursuing Northridge car finance claims and NIIB finance complaints:

• PCP and HP deals were mis-sold - Balloon payments and long-term costs were rarely explained.
• No hidden fees and high interest - Some borrowers found out later they owe more than they should have.
• Discretionary commissions - Dealers raised the interest rate to boost their own earnings, often without telling the customer.
• Sales pressure - Several customers said they were rushed into agreements without reviewing alternatives.

With the growing Northridge finance mis-sold car finance complaints, many customers are now asking whether they can claim back from NIIB to recover what they overpaid.

Was Your Northridge Car Finance Mis-Sold?

You may have a valid Northridge Finance car finance claim if:

• You were not told about commissions in your agreement.
• The terms of your Northridge car finance were not clearly explained.
• Your repayments rose unexpectedly due to hidden charges.
• You were pressured into signing without being shown fair alternatives.
• You later found fees or penalties that had never been disclosed.

If your deal included a discretionary commission arrangement, where a dealer was able to increase your interest rate to boost their commission, you may have strong grounds for a Northridge Finance PCP claim.

What Changed in 2025?

For drivers looking for Northridge finance mis-sold car finance complaints, 2025 is a decisive year.

• Supreme Court ruling Aug 2025 [1]: The Court said that secret or excessive discretionary commissions still render an agreement unfair under consumer credit law even if such commissions weren't automatically unlawful. This keeps some Northridge claims alive.
• FCA pause on complaints [2]: FCA suspended commission-related cases, including Northridge Finance complaints, until 4 December 2025. Customers still can file a Northridge finance claim, but most won't be handled until after that date.
• Redress scheme consultation [3]: For a span of 6 weeks, the FCA is expected to publish its consultation in October 2025. Final rules are due in early 2026, with Northridge Finance compensation payments expected to begin later that year.

How Much Northridge Finance Compensation Could You Get?

The FCA estimates an average redress of about £950 per customer agreement in discretionary commission cases [4].

The exact amount of Northridge Finance compensation you could receive depends on many factors such as how long your loan ran, how much the car was worth, and whether hidden commissions or unfair costs were included in it.

While some drivers may receive around the average, others with larger or longer agreements could recover more. In certain cases, extra awards may also be considered if the Northridge Finance mis-sold car finance agreement caused significant financial difficulty.

How to Make a Northridge Finance Claim

Here’s how to start your Northridge claim:

1. Review your paperwork – Watch out for hidden commissions, unclear fees or high rates in your paperwork. For those without a contract, ask Northridge Finance for a copy.
2. Send Northridge Finance a complaint - Explain why you think your agreement was mis-sold and provide evidence.
3. Escalate if necessary – If Northridge rejects your complaint or does not reply, you can escalate your Northridge Finance car finance claim to the Financial Ombudsman Service (FOS).
4. Consider professional finance claims expert's help – Many customers choose a regulated claims company to manage their Northridge Finance car finance claim, especially when paperwork or deadlines feel overwhelming.

Is Northridge Finance Part of the PCP Claim Investigation?

Yes. The FCA’s investigation into PCP car finance mis-selling covers many lenders, including Northridge Finance and its parent, NIIB Finance.

If you had a Northridge Finance PCP claim between 2007 and January 2021, you may be able to claim back from NIIB for overpaid interest or hidden commission. The pause on complaints lasts until December 2025, but preparing now will put you in a stronger position once the scheme begins.

Frequently Asked Questions

Can I claim if my Northridge car finance has already ended?

Yes. You can still bring a Northridge car finance claim even if the loan has been repaid or the car has been sold.

What is the average Northridge Finance compensation?

The FCA expects the average payout to be around £950 per claim, though some Northridge refunds will be worth several thousand pounds.

How long does a Northridge Finance claim take?

Northridge has up to eight weeks to respond. With the FCA pause in place, most Northridge Finance claims will not move forward until after December 2025.

What if Northridge Finance rejects my complaint?

You can escalate your Northridge Finance complaint to the Financial Ombudsman Service for an independent review.

Do I need a solicitor to make a Northridge claim?

Not necessarily. Many customers bring their own Northridge Finance mis-sold car finance complaint, but using a regulated PCP claims company or seeking the help of a finance claims expert can make the process easier.

What Should Northridge Customers Do Next?

If you had Northridge car finance, an NIIB loan, or a Northridge Finance PCP agreement between 2007 and 2021, it is worth checking your documents now. Seek out signs of mis-selling, gather evidence and file a Northridge Finance claim.

The FCA has paused complaints until December 2025, but those who prepare early will be first in line when the redress scheme begins in 2026. If you were affected by Northridge Finance mis-sold car finance, you could be entitled to a Northridge Finance refund worth hundreds or even thousands of pounds.

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References:

1. Supreme Court ruling Aug 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. FCA pause on complaints - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
3. Redress scheme consultation - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
4. FCA estimates an average redress of about £950 per customer agreement in discretionary commission cases - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator