Updated: 28 October 2025

Originally Published: 18 October 2024

​

Financing a car should feel straightforward. For many UK drivers, Northridge car finance made that possible through Personal Contract Purchase (PCP) and Hire Purchase (HP). These products let people spread the cost of a vehicle in a predictable way. Borrowers in 2025 are re-examining those agreements. The question in people’s minds is simple. Did I pay more than I should have?

If you took out credit between 6 April 2007 and 1 November 2024, you may be able to bring a Northridge finance claim or an NIIB finance complaint as part of the Financial Conduct Authority’s ongoing work on car finance redress. This guide explains what changed in 2025, how Northridge Finance mis-sold car finance issues typically arose, and the exact steps to start a Northridge Finance car finance claim with confidence.

​

Why Northridge Finance is being investigated

Northridge Finance, part of NIIB Group, has long worked with UK dealerships to offer quick decisions and flexible repayments. That convenience sometimes came with a catch. Investigations suggest some agreements were set up in ways that were not fully explained, which may have left customers paying more than necessary.

At the centre is the discretionary commission arrangement, often shortened to DCA. Under a DCA, a dealer could influence the interest rate on your loan. The higher the rate, the larger the commission the dealer earned. Many customers were never told that a dealer could adjust the rate. Unsurprisingly, this has led to a steady rise in Northridge Finance mis-sold car finance complaints.

The FCA banned DCAs for new business in 2021 [1]. Older contracts are now being reviewed. If your agreement involved a Northridge Finance discretionary commission setup or a similar model, you could have grounds to claim back from NIIB or submit a Northridge claim for a fair review.

​

What changed in 2025

A few clear milestones explain why more borrowers are reassessing older Northridge car finance agreements this year.

​

Supreme Court clarity in August 2025 [2]

The Court confirmed that a commission is not automatically unlawful. However, if the commission was hidden, excessive, or pushed costs higher, the overall deal can still be unfair under the Consumer Credit Act. This is important for anyone bringing a Northridge Finance claim. You do not need commission to be illegal on its face. You need to show that the way it was handled made your relationship with the lender or broker unfair.

​

FCA pause on complaint decisions until 4 December 2025 [3]

To deliver consistent outcomes across the market, the FCA extended the pause on final responses for commission cases. That pause includes Northridge Finance complaints and issues involving NIIB loans. You can still submit your Northridge Finance car finance claim today. Doing so logs your case so it can be assessed when the pause ends.

​

FCA redress consultation in October and November 2025 [4]

The FCA has opened a six-week consultation to design a national scheme covering credit agreements between 6 April 2007 and 1 November 2024. Final rules are expected in early 2026. Northridge Finance compensation payments are expected to begin later in 2026 once lenders apply the new rules.

​

How the FCA Defines Unfair Car Finance Agreements

Under the FCA’s 2025 consultation, a finance agreement may be considered unfair if it falls within one of three main categories. These are the standards the FCA and lenders will use to assess car finance complaints, including those involving Northridge Finance and NIIB Group.

​

1. Discretionary Commission Arrangements

This is the most common issue found in Northridge Finance claims. Under a discretionary commission model, the dealership could influence your interest rate and earn more if the rate increased.

Most customers were not told how this worked or how it affected their repayments. The FCA has stated that these structures created widespread unfairness in the market, as they directly tied dealer profit to customer cost.

If your agreement involved a Northridge Finance discretionary commission, your Northridge Finance PCP claim likely falls under this category.

​

2. High Commissions

In some cases, brokers or dealerships were paid unusually large commissions for arranging finance. Even when the paperwork mentioned that “a commission may be paid,” the amounts were sometimes excessive.

The FCA has highlighted certain thresholds as indicators of unfairness. For example, commissions worth 35 percent or more of the total cost of credit, or 10 percent or more of the loan amount.

High commissions can influence how a deal is presented, encouraging dealers to prioritise profit over fairness. If your Northridge car finance included such commissions without clear disclosure, this may support your Northridge Finance claim.

​

3. Restricted Lender Access

In some showrooms, customers were steered toward a single finance provider without being told about alternative lenders. This limited access prevented borrowers from comparing deals or securing the best rate available.

If your dealer only offered a Northridge Finance UK or NIIB Finance option without explaining that you could shop around, the sale may have been unfair.

The FCA considers restricted lender access another key type of mis-selling because it removes genuine customer choice and transparency.

​

Why This Matters for Northridge Finance Customers

These three categories form the backbone of the FCA’s redress framework. They mean that your Northridge Finance car finance claim can qualify even if your issue was not solely about hidden commissions.

If your agreement involved discretionary commissions, high commissions, or restricted access to lenders, your case may still be eligible for review once the scheme is in place.

​

How mis-selling usually happened

No two agreements are identical, but patterns appear across Northridge car finance claim files and NIIB car finance complaints.

• Hidden or unclear commissions. Many customers did not know a dealer could earn more by pushing up the interest rate.
• Rates that felt high without a clear reason. Borrowers with strong credit sometimes received unexpectedly high APRs.
• Sales pressure. Some people felt rushed into signing or were told an offer would expire if they took time to think.
• PCP terms not explained in plain language. Balloon payments, mileage limits, and end-of-term choices were sometimes glossed over.

If one or more of these ring true, it is worth exploring a Northridge Finance PCP claim or an NIIB finance complaint to see if you overpaid.

​

Signs your Northridge car finance may have been mis-sold

You could have a valid Northridge Finance claim if any of the following apply:

• You were not clearly told that the dealer would receive a commission or how that commission worked.
• Your APR seemed high for your credit profile, and no one explained why.
• You felt steered into a single product without time to compare alternatives.
• PCP features such as the balloon payment or mileage cap were not explained in a way you could understand.
• You later discovered hidden fees, penalties, or add-ons you did not ask for.

These issues appear frequently in Northridge Finance car finance claim evidence packs. They also appear across the NIIB Group footprint, so the same checks apply if you used NIIB loans or related products.

​

Is Northridge Finance part of the PCP claim investigation?

Many readers ask a version of the same question: is Northridge Finance part of the PCP claim review? The answer is yes. Northridge sits within scope of the FCA work on PCP and HP across the market. If you took out a Northridge PCP between 2007 and 2024, you can raise a Northridge Finance PCP claim and ask for your agreement to be assessed under the same principles as other lenders.

​

How the FCA expects redress to be calculated

The FCA proposes a hybrid approach that looks at both the commission and its real-world impact on what you paid. In practice, reviewers would consider:

• The commission payment. How big it was and whether it was disclosed in a meaningful way.
• The interest uplift. Whether commission led to a higher APR and what that cost over the term.

Typical market outcome: around £700 per eligible agreement [5].

Higher impact cases: potential return of the commission plus interest when the structure was especially unfair.

Adjustments: refund of unfair fees or add-ons and simple interest on any redress.

These are estimates for the market as a whole. They are not promises for any single Northridge Finance compensation outcome. Your result depends on the facts of your contract, your loan size and term, and the quality of your evidence.

​

Step by step: how to make a Northridge Finance claim

You can make a Northridge claim yourself for free or appoint a finance claims expert if you prefer help. The route is the same either way.

Step 1. Gather your documents

Collect your finance agreement, the pre-contract information, payment statements, and any emails or letters with the dealer or lender. If you have lost them, ask Northridge Finance or the dealer for copies. Lenders are used to retrieving paperwork.

Step 2. Sense-check the numbers

Note the APR, loan amount, monthly payment, total repayable, and any fees. If it is a PCP, note the balloon payment, mileage limit, and excess mileage charge. Ask yourself whether these figures were explained clearly at the time.

Step 3. Look for commission clues

Scan your paperwork for lines that say a commission “may be paid”. That wording can be too vague to enable an informed choice. If you do not see a disclosure anywhere, make a note of that as well.

Step 4. Write your complaint

Stay cool and use the facts. Here is an easy template you can use and modify:

• “I was not informed that my dealer could mark up my interest rate to earn a commission. I believe this led me to pay more than necessary on my Northridge Finance agreement. Please check if a commission was paid, how my rate was calculated and check my account for a refund of the overpaid amount.”

Add your name, agreement number and contact details. Attach copies of important documents.

Step 5. Send your complaint

Submit by email, post, or through the lender’s online form. Keep copies of everything and note the submission date. This creates a clear timeline for your Northridge Finance car finance claim.

Step 6. Wait for the lender’s response

In normal times, firms have eight weeks to respond. Commission-related final responses are currently paused until 4 December 2025, but submitting now makes sure your case is logged.

Step 7. Escalate to the Ombudsman if needed

If you disagree with the outcome, you can refer your case to the Financial Ombudsman Service within six months of the final response. The Ombudsman is free, independent, and can order redress where mis-selling is proven.

​

What your Northridge Finance compensation could include

If your Northridge Finance PCP claim or HP complaint is upheld, redress may include:

• Refund of overpaid interest where a discretionary structure increased your APR.
• Repayment of undisclosed commission that affected the cost of your loan.
• Refund of unfair or hidden fees, such as administration or option to purchase charges.
• Simple interest on any refund, often at the Bank of England base rate plus one percentage point.
• Correction of credit file entries where appropriate.

Market modelling indicates an average outcome around £700 per agreement, with higher results possible for larger or longer loans. Again, these figures are indicative, not guaranteed.

​

Northridge Finance, NIIB Group and your eligibility

Because Northridge Finance is part of NIIB Group, customers sometimes ask whether to address their complaint to Northridge or NIIB. In most cases you raise it with the brand named on your agreement. If your paperwork references NIIB Finance, you can still follow the same steps. The same applies to older NIIB loans or NIIB car finance arrangements. If in doubt, ask the lender to confirm the correct team. The eligibility criteria are the same, and you can still claim back from NIIB if commission or disclosure issues affected you.

​

DIY claim or use a finance claims expert

You do not have to pay anyone to make a Northridge Finance claim. Many people prefer to handle it themselves. Others choose a representative for convenience.

​

Do it yourself

• Free route with full control.
• Best if you have your documents and feel comfortable managing timelines.

Use a finance claims expert or solicitor

• Helpful for complex files, missing paperwork, or time constraints.
• Commonly no win no fee, with fees typically between 18 and 36 percent including VAT of any redress.
• Always check that the firm is authorised and that the fee structure is clear before you sign.

Using a representative does not increase your eligibility. It can reduce admin and make sure your Northridge Finance car finance claim is presented clearly.

​

Practical checklist before you submit

• I have copies of my agreement and pre-contract information, or I have requested them.
• I have written down the APR, total repayable, fees, and PCP balloon amount if relevant.
• I have noted whether commission was disclosed and how.
• I have compared my APR with market norms at the time.
• I have prepared a short factual complaint with my agreement number.

Spending thirty minutes on this checklist will make your Northridge Finance claim easier to review.

​

Key facts at a glance

• Covered period: 6 April 2007 to 1 November 2024
• Products covered: PCP, HP, and other regulated Northridge car finance agreements
• Who is involved: Northridge Finance, NIIB Group, and other market lenders
• Common issues: Discretionary commissions, hidden fees, poor disclosure
• Estimated market average: Around £700 per eligible agreement
• Complaint pause ends: 4 December 2025
• Final FCA rules expected: Early 2026
• Proposed lender response deadline: 31 July 2026
• Compensation payments expected: Later in 2026

Frequently Asked Questions

Is Northridge Finance part of the PCP claim investigation?

Yes. Northridge sits within scope. If you used PCP or HP during the covered dates, you can submit a Northridge Finance PCP claim for review.

Can I claim if my Northridge car finance has ended?

Yes. You can bring a Northridge Finance car finance claim even if the vehicle was sold or the agreement has finished, as long as it falls within the dates above.

How much could I receive?

Market modelling suggests around £700 per agreement on average. Your Northridge Finance compensation could be higher or lower depending on the size of the loan, how long it ran, and how the commission affected your rate.

How long will it take?

Due to the FCA pause, most commission cases will move forward after December 2025. Final rules are expected in early 2026, with payments later in 2026.

Do I need a lawyer or a claims company?

No. You can complain for free. If you prefer help, a finance claims expert can manage the process, usually on a no win no fee basis. Always check authorisation and fees.

Can I claim back from NIIB if my paperwork mentions NIIB rather than Northridge?

Yes. You can claim back from NIIB if you used NIIB finance or NIIB car finance and the same commission or disclosure issues apply. The route is the same.

​

Final thoughts

The FCA’s consultation is designed to bring fairness and consistency to a complicated problem. If your agreement involved a discretionary commission or you do not feel key costs were explained, you do not have to guess. You can ask for a review.

Whether you file a Northridge claim yourself or work with a finance claims expert, the most important step is the first one. Gather your documents, write a short factual summary, and submit your Northridge Finance claim or NIIB finance complaint so it is in the queue. Once the FCA’s final rules are published in 2026, your case can be assessed under a single national framework.

A successful Northridge Finance compensation outcome cannot be guaranteed. What you can control is the strength of your submission. Clear documents and a simple explanation give the reviewer what they need to decide whether you overpaid and what should be returned.

_________

References:

1. The FCA banned DCAs for new business in 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
2. Supreme Court clarity in August 2025 - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. FCA pause on complaint decisions until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
4. FCA redress consultation in October and November 2025 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
5. Typical market outcome: around £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme