Updated: 10 September 2025

Originally Published: 19 March 2025

Were you overcharged on your car finance? You could be owed thousands.

A large number of vehicle customers acquired Black Horse-financed automobiles without realising they paid high-interest amounts. Borrowers ended up paying excessive payments because Black Horse used hidden fees together with secret commission arrangements. This is why consumers could be eligible for large amounts of refund money.

This article provides you with information to check your eligibility for repayment and shows you how to obtain your entitled money following the ongoing car finance scandal in the motor finance sector. In the following sections, check out the process for getting back your funds.

Can I Claim Against Black Horse Finance?

Many customers wonder if they can claim against Black Horse Finance. A Black Horse finance claim is valid for car finance agreement holders who received undisclosed commissions, underwent inflated interest rates, or were provided misleading terms in their agreements entered into from 2007 to 2021.

Hidden Commissions: Were You Overcharged?

The Black Horse finance claim commonly occurs because of discretionary commission arrangements. Under these commissions, brokers and dealers gained the authority to control interest rate pricing. Car finance agreement recipients who faced discretionary commission arrangements have the potential to obtain Black Horse refunds.

Borrowers Who Were Misled About Their Loan Terms

All car finance agreements need full transparency because borrowers must understand each term before they sign their agreement. An incorrect representation of the total cost to pay during an agreement period could serve as a legal basis for making a Black Horse car finance claim. When financial records mislead customers, they are unable to make proper choices which results in damaging economic situations.

Customers Who Experienced Excessive Interest Rates Due to Hidden Fees

Many consumers did not know that hidden commissions led their car finance agreements to carry higher interest rates. The undisclosed commissions increased the costs of their loans beyond expected amounts to thousands of pounds. A Black Horse compensation claim would fight to recover overpaid interest.

Common Issues Leading to Black Horse Claims

Borrowers commonly ask if it’s possible to claim against Black Horse Finance. The answer depends on the presence of unfair lending practices which include hidden commissions, excessive interest rates, and deceptive loan terms in your agreement. To determine your eligibility for a claim, it is important to recognise what type of common problems led to your finance agreement being mis-sold.

Lack of Transparency in Finance Agreements

Each financial agreement must present clear details to enable consumers to understand the borrowing process. Black Horse Finance delivered loans that many of its customers did not understand properly during the transaction process. Therefore, Black Horse compensation is available to customers who received incomplete disclosure of their loan terms when signing the agreement.

Sales Pressure from Dealers or Brokers

Some customers felt pressured into signing finance agreements on the spot, without being given time to review the terms properly. Some customers found out afterward that the financial package portrayed as their only choice could have been exchanged for superior deals. Additionally, the sign-up process was rushed when customers received a limited opportunity to study the full contents of their agreement. A Black Horse car finance claim provides a way to recover expenses from deceptive sales practices that occurred to you.

How the Claims Process Works

If you're wondering how to claim against Black Horse Finance, you need to establish that your car finance agreement involved wrong selling practices. Your ability to take proper action stems from your knowledge of all compensation claims procedure stages. The chance of obtaining compensation will be improved through this effort.

Step 1: Checking Eligibility and Gathering Finance Agreement Details

Before making a Black Horse claim, you must perform investigations to prove improper sales. The process involves financial document assessment, unfair lending practice identification, and essential paper collection.

How to Identify Unfair Lending Practices in Your Agreement

Loan institutions must explain all loan conditions and payment charges, showing brokerage payments to borrowers. The lending practices used by Black Horse Finance operated against numerous customers who remained unaware of these practices. These are indicators that your deal was most likely mis-sold:

a. Unreasonably High Interest Rates

Interest rates should be solely based on clear factors such as creditworthiness or market rates. Therefore, the interest rate should be verified as to whether it is higher than industry standards. This may mean that Black Horse Finance allowed brokers to increase the interest rates for their financial gain. In turn, this enables you to claim compensation.

b. Undisclosed Commission Payments to Dealers or Brokers

The practice of concealed commission deals represents a widespread issue across numerous claims. The absence of information about third-party payment commissions could enable you to file a claim. This is because hidden payments resulted in higher interest rates, allowing customers to incur extra costs.

c. Lack of Transparency in Loan Terms and Fees

A mis-sale of your contract exists when it contains complicated terms, undisclosed fees, and unclear conditions that were inadequately disclosed. Reviewing your paperwork for missing or vague information will help you prove your eligibility for compensation.

d. Feeling Rushed into Signing the Loan Documents Without Full Disclosure

Unfair sales practices emerge when dealers push customers to immediately sign contracts before a proper explanation of the entire agreement. People typically had to accept the financed deals because dealers prevented them from seeking alternative options. A refund becomes more likely when you face such circumstances.

How to Review Your Finance Agreement

You need to look at your finance paperwork closely. A systematic review process will prevent essential details from being missed.

a. Locate All Relevant Finance Documents

Firstly, you’ll need paperwork relating to your agreement. This includes:

• A copy of the original finance contract from the time of purchase.
• Monthly repayment statements showing payments and interest paid.
• Any correspondence with Black Horse Finance or the dealer.
• Other paperwork detailing fees, commissions, or modifications to your loan.

Black Horse Finance will provide your requested documents when you cannot access them by other means. Lenders must supply this information, although there may be a small fee for retrieving older records.

b. Examine the Interest Rate Applied to Your Loan

Check your finance interest rate against normal finance rate levels. Your high rate of interest should have justification. Thus, if your fee appears unreasonable, it may indicate that Black Horse imposed additional commissions. The review of interest rates allows you to check if you received unfair charges and strengthen your case for compensation from Black Horse.

c. Look for Any Mention of Commissions or Broker Fees

Review all commission payment terms and dealer incentive statements as well as broker fee provisions contained within the agreement. Many borrowers received additional finance costs through commissions which were not mentioned explicitly in their financing contracts. Application of commissions without your knowledge could establish your case for loan mis-sale.

d. Assess Whether Loan Terms Were Clearly Explained

When you had doubts about loan conditions, a dealer or broker could have deceived you by claiming the agreement was typical. In fact, most successful claims derive from incomplete disclosure about loan conditions and payment plans.

e. Check for Any Additional Fees or Charges

During the finance agreement, certain unanticipated costs may have appeared such as early repayment fees, balloon payment requirements, and administrative costs. The unclear or high costs of fees during initial disclosure may provide enough grounds to make a Black Horse claim.

Step 2: Filing an Initial Complaint with Black Horse

You should file an official complaint with substantiating evidence in hand. A formal complaint allows you to obtain proper notice from Black Horse Finance about your loan issues. When filing your official complaint, you should use a detailed structure to increase your success rate in this process.

How to Write an Effective Complaint to Black Horse Finance

Your complaint must be properly prepared to help Black Horse Finance understand your situation. A clear and factual approach is essential during your complaint submission to Black Horse Finance. A complaint should contain the following essential points:

a. Clearly State That You Are Making a Formal Complaint

Start your complaint by saying you are making a formal complaint about a mis-sold car finance agreement. This will help the Black Horse Finance team to correctly log your letter or email.

Example:

"This is a formal complaint about the mis-selling of my car finance agreement with Black Horse Finance. I had a mis-sold loan because commission payments and unfair interest rates were not revealed to me."

Telling them very clearly that this is a formal complaint will ensure that it will be taken seriously and addressed in the time frame required.

b. Provide Your Personal and Loan Details

Your relevant information details will allow Black Horse Finance to locate your account and address your complaint quickly.

• Your complete name and contact details
• Loan account number or other agreement reference
• When the finance deal was signed
• The dealer or broker who negotiated the loan

These details ensure that your complaint goes with the correct ID, preventing delays in the investigation.

c. Explain Why You Believe Your Loan Was Mis-Sold

Your complaint should be setting out why you think your Black Horse Finance agreement was mis-sold. You need to lay out what is wrong with your loan.

Example:

“When I signed up for my car finance agreement, I wasn’t told that my dealer gets paid a commission from Black Horse Finance. I subsequently found out that this commission impacted my interest rate so I ended up paying a lot more interest over the life of the loan. I want a refund of the overcharged interest."

Clear and concise case description increases your chance of receiving a positive outcome.

d. Specify the Resolution You Are Seeking

Mention what you expect from Black Horse Finance. This could include:

• The reimbursement of improper interest charges, in full or in totality.
• Recalc the loan balance to eliminate unfair charges
• Compensation for loss or harm resulting from the mis-selling.

Example:

"As my loan was mis-sold, I am requesting a full refund of the extra interest that I paid due to undisclosed commissions. I also want my remaining loan balance adjusted to an equitable interest rate.”

Telling Black Horse Finance what the expected resolution of your complaint would be means that you know how to put things right.

How to Submit Your Complaint to Black Horse Finance

There are different options to submit your complaint to Black Horse Finance:

a. Online Complaint Form

Black Horse Finance provides its customers with online complaint submission forms [1]. It enables user complaints to have immediate processing and reception of complaints.

b. Email Submission

You can file your complaint by mail, sending in support documents. Using this method, it is important to get your subject line right. Have in the subject line that this is a formal complaint.

Example:

“Formal Complaint – Mis-Sold Car Finance Agreement (Your Loan Reference Number)”

c. Postal Submission

You can also send your written complaint by post. You may wish to send it as a recorded delivery to confirm that it is received. Save a copy of your complaint and any communication for your records.

What Happens After You Submit Your Complaint?

After receiving your complaint, Black Horse Finance will normally have to deal with it within eight weeks. They may carry out an investigation and may ask for additional information or evidence from you. 

You should be aware that the FCA has extended the deadline for financial firms to respond to complaints that they have received to after 4 December 2025 [2]. This includes Black Horse. It means you can submit a Black Horse claim now but it's unlikely anything will happen in most cases until after 4 December 2025.

Nonetheless, there are a few things that can happen with your complaint:

a. Your Complaint Is Upheld and You Receive Compensation

If Black Horse agrees that your loan was mis-sold, they may well compensate you. This may be in the form of a refund of any overpaid interest by Black Horse, a recalculation of your loan balance or indeed some other form of monetary repayment. If you are satisfied with their offer to settle you can accept and close the complaint.

b. Your Complaint Is Rejected or You Receive an Unsatisfactory Response

You can escalate the case if Black Horse Finance refuses to uphold your complaint or provides compensation that is not enough for the claim made. Most lenders deny claims the first time, regardless of merit. However, if this occurs, do not lose hope as there are additional measures you can take to refute their verdict.

Step 3: Escalating to the Financial Ombudsman if Needed

If Black Horse Finance fails to address your complaint to your satisfaction, you can escalate your case to the Financial Ombudsman Service (FOS). The FOS is an independent body that deals with complaints from consumers about financial service providers. Its job is to police the lenders and to discipline those who don’t treat customers fairly, or act within financial regulations.

When Should You Escalate Your Complaint to the Financial Ombudsman?

If your complaint is rejected or you receive an unfair offer, you can take your case to the Financial Ombudsman:

a. Black Horse Finance Has Rejected Your Complaint

If Black Horse do not accept that they have acted wrongly and will not pay compensation, you may take your complaint to the FOS. It is common for lenders to turn down claims initially, even in the face of unambiguous evidence of mis-selling by the borrower. A refusal does not mean that your claim is incorrect. You can ask the FOS to overrule the lender's decision.

b. Black Horse Finance Has Made an Unsatisfactory Offer

Black Horse Finance may acknowledge that mis-selling did occur but the compensation sum they’re offering you could be less than you think you’re entitled to. If you are not happy with Black Horse Finance's reply or they have not offered to cover the financial loss you have incurred, you can take your complaint to the FOS.

How to Escalate a Complaint to the Financial Ombudsman Service

If you wish to submit your case for the Financial Ombudsman Service's review, you'll need to supply all applicable information regarding your complaint. Below are the essential steps involved:

a. Collect Your Evidence

Ensure you've copied all of the relevant paperwork before you send your complaint to the FOS. This includes:

• A copy of the original complaint filed with Black Horse Finance.
• The intricate Black Horse Finance contract and payment history you retained.
• Any supplementary correspondence exchanged with Black Horse Finance via letters or emails.

The more evidence you can supply, the better. The FOS will use any factual evidence to determine whether your loan was mis-sold to you.

b. Complete the Financial Ombudsman Complaint Form

The FOS demands consumers fill out an official complaint form [3] when presenting their case. This form solicits key specifics, such as:

• Your contact info and personal details.
• The name of the financial institution in question (Black Horse Finance).
• A summary of your complaint, including why you believe the loan was improperly sold.
• The resolution the individual pursues (i.e. reimbursement, loan modification, or compensation).

You have the right to contact the Financial Ombudsman Service to file a complaint with a financial firm.

c. Submit Your Complaint to the Financial Ombudsman

There are a few methods for officially filing your complaint with the Financial Ombudsman, after you are ready with the details of your case:

• Online Submission: The quickest route is uploading your filled-out form as well as any extra documentation online through the FOS website portal.
• Email: For those favouring electronic correspondence, attached files can be sent via email.
• Postal Mail: Should you wish to submit via more traditional means, materials can be mailed in though this avenue is most time-consuming.

No matter the selected approach, the complainant will receive notice that the correspondence was successful and the complaint is now in the process of evaluation.

What Happens After You Submit a Complaint to the Financial Ombudsman?

The FOS analyses your complaint to determine if Black Horse Finances behaved without fairness. The FOS conducts an impartial evaluation using this standard protocol:

a. Initial Assessment of Your Case

The FOS will first validate that your complaint fits the standards for an inquiry. They will check whether you have followed the proper route by first registering a complaint with Black Horse Finances before escalating. If you are qualified, they will proceed to the next stage.

b. Review of Evidence and Correspondence

An Ombudsman investigator examines every piece of presented evidence from both sides. The Ombudsman investigator will review your loan agreement, complaint records, and the responses from Black Horse Finances. Additional information requests may be made by an Ombudsman investigator to each party to clarify specific aspects of the case.

c. Decision by the Financial Ombudsman

The investigator decides after reviewing every accessible piece of data and evidence. The possible discerning outcomes include:

• A ruling in your favour: The FOS would order Black Horse Finances to take corrective measures when they confirmed deceptive loan selling practices. Black Horse Finances must offer compensation to borrowers that involves either complete cash refunds, fair collateral loan adjustments, or fair compensation expenses for damages.
• A ruling in Black Horse Finance’s favour: This happens once the FOS determines that the loan was not sold through fraudulent means. Yet, in most cases, the Ombudsman would propose goodwill payments with possible reimbursement portions based on principles of fairness.
• A suggestion for further negotiations: The FOS occasionally suggests to both entities that they pursue a settlement agreement instead of a final decision from them.

d. Accepting or Appealing the Decision

If the FOS rules in your favour, you will receive details of the compensation you are entitled to. If you accept their decision, Black Horse Finances must comply with the ruling and provide the agreed compensation. However, if either party disagrees with the Ombudsman’s ruling, they may request a further review or challenge the decision.

Step 4: Possible Routes for Claiming Compensation

Numerous claimants want to know how much they will get back from Black Horse. The average discretionary commission claim is about £950 per agreement according to the FCA guidance [4]. The precise amount will depend on the individual circumstances of each claim. 

For some Black Horse customers the payout could be a relatively small amount of money to refund. In other cases, the sum may be a few thousand pounds. You may proceed to legal action when Black Horse Finance rejects your standard complaint efforts. This will help you get the full compensation you deserve.

Options for Pursuing a Claim Against Black Horse Finance

Each claimant can choose between several options depending on how complicated their case is and what amount of compensation they aim to obtain.

a. Using a Claims Management Company (CMC)

Claims management companies (CMCs) have always included finance claims experts that determine mis-selling evaluation cases. Companies that provide no-win no-fee services to customers should be your selection because they bill you only once you prevail in your claim. Reputable firms that excel at compensation recovery should be sought after instead of adopting quick solutions that yield minimum financial benefits.

b. Seeking Assistance from a Solicitor Specialising in Financial Mis-Selling

A solicitor delivers professional legal advice to Black Horse Finance during negotiations and offers legal representation for court proceedings. The payment structure in law firms exists as two options: no-fee-no-win arrangements or clients are charged either fixed fees or pay per hour.

When seeking legal advice from solicitors, there are three main situations where their help will be valuable:

• The financial demand exceeds a substantial amount.
• Some terms and conditions within the finance agreement fail to clarify details or remain in dispute.
• Two entities including Black Horse Finance and FOS denied the dispute which has arisen.

c. Taking the Case to Small Claims Court

A case can move into the Small Claims Courtroom [5] when the total claim does not exceed £10,000 in England and Wales as well as £5,000 in Scotland or £3,000 in Northern Ireland. The Small Claims Court maintains easy procedures and the monetary settlements receive affordable pricing.

The Small Claims Courtroom uses the following procedure:

• Submitting a claim online or individually - The claimant must provide a claim form that outlines the case details along with the compensation request.
• Paying a court docket payment - Costs range depending on the quantity being claimed however typically range from £35 to £455.
• Participating in a hearing - If the lender disputes the claim, a courtroom hearing might be required, although many circumstances are resolved earlier than reaching this stage.

d. High Court or Group Litigation Action

The extensive wrong marketing practices by Black Horse Finance make group litigation against the company possible. The legal group system allows multiple claimants to unite to submit claims to the company.

A GLO offers several benefits during the following circumstances:

• Systemic cases of abuse and misleading conduct have clear supporting evidence.
• A vast number of customers' circumstances have been impacted.
• The case demands significant legal expertise and resources.

A professional solicitor or law firm should guide potential group litigation participants who have Black Horse Finance as customers. Professional legal counsel consultation assists people in identifying whether collective action is advisable.

On 1 August 2025, the UK Supreme Court upheld the Court of Appeal’s decision on car finance agreements in all but one respect. Rejecting the first two consumer claims, the Court found that car dealers did not owe fiduciary duties to their customers and that lenders were not responsible for undisclosed commissions. However, in Marcus Johnson’s case, the Supreme Court upheld the finding of an ‘unfair relationship’ under Section 140A of the Consumer Credit Act 1974 (CCA) [6].

Johnson’s agreement involved the payment of a very large commission (circa 25%) to the dealer which was undisclosed at the point of sale and instead hidden in the interest. The lack of full disclosure about the commission led to the Supreme Court finding an ‘unfair relationship’. Johnson was awarded the amount of the commission plus interest (just over £3,000).

This partial win, in addition to awarding Johnson compensation, opened the door for others to bring claims. The decision provides a clear mechanism for claims, in particular where a discretionary commission arrangement (DCA) was not adequately disclosed.

Meanwhile, the Financial Conduct Authority (FCA) responded by saying that it will publish a redress scheme consultation [7] which will set out the details of how the UK-wide compensation scheme will work. The consultation will last around 6 weeks with final redress rules expected in early 2026. This means that we are now unlikely to see any redress payments until later in 2026.

Customers of car finance lender Black Horse may be able to reclaim thousands of pounds in overpayments after learning more about UK car finance claims.

Can You Claim Against Black Horse Finance?

UK consumers who were overcharged by Black Horse Finance may be entitled to substantial financial compensation. This is why you don’t let unfair lending practices go unchallenged. Refunds of thousands of excess interest payments await.

Time is crucial. Your opportunity to obtain proper compensation becomes stronger based on your immediate response. The claims process requires your attention right now. Lenders should stop unfair practices, and it will start when you take back your rightful compensation today.

FAQs 

Will I get a refund from Black Horse?

If you were mis-sold car finance by Black Horse due to hidden commissions or unfair lending, you may be eligible for a refund.

How long do Black Horse claims take? 

The time it takes to process a Black Horse claim can vary based on individual circumstances. Simple complaints can be resolved within a few weeks. If the issue is more complex and requires escalation to the Financial Ombudsman, it can take several months.

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

You don’t necessarily need a solicitor for a Black Horse PCP claim, but it’s often in your best interests to use the services of a finance claims expert or a reputable PCP claims company. These professionals can significantly increase your chances of receiving the maximum refund available to you since PCP mis-selling can be complex, and eligibility isn’t always clear-cut.

What happens if Black Horse rejects my claim?

If Black Horse rejects your claim, you can escalate it to the Financial Ombudsman, who will review the case and determine if you are eligible for a refund due to mis-selling.

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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 financial firms to respond to complaints that they have received to after 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints 
3. FOS official complaint form - https://help.financial-ombudsman.org.uk/help
4. The average discretionary commission claim is about £950 per agreement according to the FCA guidance - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator
5. A case can move into the Small Claims Courtroom - https://www.citizensadvice.org.uk/law-and-courts/legal-system/small-claims/deciding-whether-to-make-a-small-claim/
6. the Supreme Court upheld the finding of an ‘unfair relationship’ under Section 140A of the Consumer Credit Act 1974 (CCA) - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
7. the Financial Conduct Authority (FCA) responded by saying that it will publish a redress scheme consultation - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme