Updated: 31 October 2025

Originally Published: 19 March 2025

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If you took out a car finance agreement with Black Horse Finance, you may have a valid Black Horse finance claim on your hands and potentially a Black Horse refund waiting for you. Many drivers only now realise they may have paid too much because of hidden fees or undisclosed commissions. A specialist finance claims expert can help you assess your position around a possible Black Horse claim, whether that is for PCP or other types of car finance. This guide explains how the process works, how long does a PCP claim take, and what to do next.

Who Can Claim Against Black Horse Finance?

The simple question: can I claim against Black Horse Finance? The answer is yes, but only under certain conditions. Were you the customer of a Black Horse car finance plan (usually PCP or HP) between 2007 and 2024 and did you experience one or more of the following? If so you may be able to make a Black Horse car finance claim or claim Black Horse compensation:

• Hidden or undisclosed commission payments to brokers or dealers (for example via discretionary commission arrangements)
• Interest rates that appear inflated or not justified by your creditworthiness or the market
• Lack of transparency in the agreement or feeling pressured into signing without full disclosure

These are indicators that the finance deal may have involved unfair lending practices, and so support for a Black Horse claim exists.

Why These Claims Are Arising

The background is the broader car finance scandal in the UK. The Financial Conduct Authority (FCA) has identified widespread use of undisclosed commission arrangements, specifically discretionary commission arrangements (DCAs), and other unfair lending practices in motor finance.

In many cases the broker or dealer could adjust your interest rate in order to get a higher payment from the lender, a part-hidden cost built into your finance package. Since you weren’t told of this effect, you may have overpaid. If your contract with Black Horse or its dealer included such arrangements, you may qualify to refund my PCP style compensation under a Black Horse refund claim.

Typical Issues That Qualify for a Black Horse Car Finance Claim

Here are the common issues that can trigger a claim:

• Lack of transparency: you weren’t properly told commission was being paid, or how your rate was determined.
• Hidden broker/dealer payments: you entered into an agreement not knowing the dealer received an incentive.
• Forced to sign: the dealer or broker pushed you into signing quickly without full explanation or only presented one financing choice.
• Excess interest rates: you paid a higher interest rate than the industry standard for your credit profile or similar deals.

If your agreement with Black Horse exhibits any of those, you should reasonably explore a Black Horse compensation claim.

Step-by-Step: How to Make a Black Horse Claim

Step 1: Check Eligibility & Gather Documents

• Get hold of your original finance agreement, and your monthly statements, plus any correspondence you've had with Black Horse or the dealer.
• Examine the interest rate you were given, and compare with the market rate. Was commission or broker's fee mentioned?
• Consider if terms were made clear to you, and if fees were adequately disclosed.

Step 2: File an Initial Complaint with Black Horse

• Write a formal complaint: clearly state you are lodging a Black Horse car finance claim due to mis-selling (e.g., undisclosed commissions).
• Provide full loan reference, dealer name, date of agreement, and evidence why you believe your loan was mis-sold.
• Submit via Black Horse’s online complaint form at Black Horse online complaint submission forms [1] or by post/email.
• The FCA has extended the deadline for firms to respond to motor finance complaints until after 4 December 2025 [2].

Step 3: Escalate to the Financial Ombudsman Service (FOS) if Rejected

• If Black Horse replies and rejects your claim or gives an unsatisfactory offer, you can escalate to FOS.
• You’ll need your complaint record, contract, payments history etc. Submit the FOS form [3].

Step 4: Considering Legal or Group Action

• You may engage a finance claims expert, a solicitor specialising in financial mis-selling, or in some cases join collective litigation.
• Using a no-win-no-fee CMC is an option, but beware that fees can reduce your payout. The FCA warns about high commission-seekers.

How Much Compensation Could You Get?

The amount depends on your individual circumstances (loan size, interest rate differential, level of undisclosed commission). As a rough guide:

• The FCA currently estimates most will get around £700 per agreement on average [4].
• Some claimants may get “a few thousand pounds” depending on the scale of overpayment.
• Escalated or court-based cases may secure more, but costs may also rise.

How Long Does a PCP Claim or Car Finance Claim Take?

One common question: how long does a PCP claim take (or more generally how long does car finance claims take to pay out)? Here are some broad guidelines:

• If you submit a simple complaint with Black Horse and they admit liability, you might get a resolution within weeks.
• If the matter is complex or escalates to FOS, it may take several months.
• With the FCA’s proposed redress scheme, communications to eligible customers may begin when the scheme launches, with payouts to follow.
• Therefore, prepare for both immediate action (complaint now) and longer-term waiting (if the scheme is used).

What’s Changing: The FCA Compensation Scheme Overview

Here are the key updated developments you need to know:

• The FCA is consulting on a UK-wide compensation scheme for mis-sold motor finance agreements between April 2007 and 1 November 2024 [5].
• Around 14 million car finance agreements may qualify, with average payouts near £700 each.
• Total industry cost could be anywhere between £8 billion and £11 billion (and previously estimates up to £18bn) depending on participation.
• Timeline: Final rules expected early 2026; payments likely begin later that year.
• If your claim is dealt with via the scheme, you may not need to pay a CMC or solicitor; direct engagement may be quicker and cheaper.

What This Means for Black Horse Finance Customers

If you financed a vehicle with Black Horse between 2007 and around 2024, it’s vital you act now:

• Even if you haven’t yet made a complaint, you can start gathering documents now.
• If you have already complained, you may be placed into whatever compensation scheme the FCA finalises, potentially for speedier payment.
• Black Horse may also proactively contact you once scheme rules are finalised.
• You do not necessarily need to pay a claims firm to begin; you can handle it yourself for free via Black Horse or via a standard complaint.

FAQs

Will I get a refund from Black Horse?

If you were mis-sold through undisclosed commissions or unfair lending practices, yes, you may receive a Black Horse refund.

How long do Black Horse claims take?

There is no fixed timeframe. A straightforward complaint may be resolved in weeks; more complex claims involving escalation or the FCA scheme can take months.

Do I need a solicitor for my Black Horse PCP claim?

Not always. A finance claims expert may assist and is often sufficient. Unless you have a complex case or high value, you can proceed with a direct complaint or an expert consultancy rather than full legal representation.

What happens if Black Horse rejects my claim?

You can escalate to the FOS or await inclusion in the FCA’s redress scheme if applicable. Keep your evidence and organisation of your case tidy.

Conclusion

If you financed a vehicle through Black Horse Finance and suspect you may have been subjected to hidden broker commissions, inflated interest or misleading loan terms, you should not delay. A Black Horse claim could lead to a meaningful Black Horse refund and while the full redress scheme is still being finalised, you can already begin your complaint process. Working with a qualified finance claims expert can simplify things and maximise your outcome. The key questions such as how long does a PCP claim take and how long does car finance claims take to pay out depend on your case complexity, but early action always helps. With the FCA gearing up to implement a nationwide redress scheme, this is an important moment to act, gather your documents and claim what you’re owed.

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References:

1. Black Horse online complaint submission forms - https://www.blackhorse.co.uk/help/complaints.html
2. The FCA has extended the deadline for firms to respond to motor finance complaints until after 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints 
3. Submit the FOS form - https://help.financial-ombudsman.org.uk/help
4. The FCA currently estimates most will get around £700 per agreement on average - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
5. The FCA is consulting on a UK-wide compensation scheme for mis-sold motor finance agreements between April 2007 and 1 November 2024 - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme