Based in the UK, Blackhorse is a motor finance company and a wholly owned subsidiary of Lloyds Banking Group. According to the brand’s 2022 annual reports and accounts the company experienced an increase in loans and advances to customers of £421,062,000 (2021: £423,048,000 decrease) during the year. The Company continues to support Lloyds Banking Group plc’s related initiatives, including Helping Britain Prosper by actively managing its current book of hire purchase products and other loans.
Blackhorse PCP Claims
Did you have a blackhorse car finance agreement before January 28th 2021? If so, you may be able to claim compensation in light of a new FCA announcement concerning hidden commissions.
Claim NowA background on Blackhorse
In addition, the Company is an integral part of supporting the Group’s desire to transition to electric vehicles, forming part of a number of commitments it has made to support the green agenda.
What are Blackhorse PCP claims?
Back in January 2021, the Financial Conduct Authority (FCA) prohibited further ‘discretionary commission arrangements’ (DCAs). This stopped lenders from incentivizing brokers to increase interest rates on car finance so that they’d pocket more commission. Fast forward to January 2024 and the FCA launched an investigation into this exact matter. It is worth noting that to announce such a large-scale investigation, they probably already have significant evidence of this form of misseling.
The Financial Conduct Authority’s decision to investigate has been the result of customer complaints concerning motor finance firms potentially unfairly rejecting mis-selling claims. Such complaints from customers are centred around the belief that their contract was more costly due to their dealer/broker earning a significant secret commission from their policy.
Who has a Blackhorse PCP claim?
If you are wondering whether or not you may have a claim against Blackhorse then you will need to have bought your car with the aid of either a PCP or Hire purchase agreement. The FCA’s investigation will only cover car finance sales that meet certain criteria. In keeping with the deadline that banned hidden commissions in January 2021, complaints need to be made only for car finance agreements sold before the 28th of January 2021 date. You will not be able to make a complaint If you bought a car on finance after the deadline or without PCP or Hire Purchase agreement. If you did purchase your car with the aid of car finance but it was on or after the 28th of January 2021 deadline, you will not be eligible for compensation
Secondly, a personal contract hire agreement complaint in which the car was leased will not be included. If you do not fit the hidden commission criteria, you may still have a car finance unaffordability claim if you can provide evidence that necessary background checks were not carried out by the lender or dealership who offered you the loan.
How to claim Blackhorse PCP compensation
The FCA have asked firms to pause responding to customer complaints at this moment. The exact period of this interlude began after 17th November 2023 and will end on the 25th September 2024 to allow the whilst FCA to conduct their investiagtion. There is a chance this deadline could be pushed further back. Whilst the investigation is being conducted, it is a good idea to lodge any complaints to the firm as soon as you can as there is often a limitation period to be observed. With regards to misselliing, you are generally required to make your complaint to your provider within six years of the issue, or within three years of you becoming aware of the problem.
We can help you get kickstart your complaint in order to see if you may be eligible for a payout, click here to get going.
Blackhorse Secret Hidden Commisions
It has been unveiled that lenders tend to conceal the existence of commission offered to their brokers. A mystery shopping exercise carried out back in 2018 reviewed the processes followed by 122 retailers in their provision of Motor Finance. Of those 122 retailers, only 11 chose to disclose to the customer that commission may be received by the broker for arranging the finance. This violates CONC requirements as it creates an unfair relationship between customer and lender.
Blackhorse Difference In Commisions
It has been found that lenders often incentivise a broker to charge a higher interest by compensating them with a commission proportional to the interest the sell. The estimated cost of this behaviour for the customers is £300m annually. An FCA consultation entitled : ‘Motor Finance discretionary commission models and consumer credit commission disclosure,’ found that Difference in Charge models are the most damaging to the customer which unnervingly consist of 95% of the 1000 agreements the FCA looked into.
Blackhorse Inadequately Explained Contracts
The mystery shopper exercise mentioned earlier which was carried out by the FCA also wanted to investigate whether or not lenders fully disclosed all the necessary information regarding the Motor Finance agreements to be made. The shoppers found that the concept of ownership of a car under PCP was frequently brushed over or poorly explained. 69% of the mystery shoppers were not made aware by the broker that they would not fully own the vehicle until they had payed the final ‘balloon payment.’
How much is a Blackhorse PCP claim worth?
Nobody knows how much a PCP claim will be worth to customers at this juncture. The FCA will need to complete their investigation and assess the scale and magnitude of the problem thoroughly before making this decision. To date, the FCA has simply stated that it will “identify how best to make sure people who are owed compensation receive an appropriate settlement in an orderly, consistent and efficient way”.
Examples Of PCP Misselling
A list of real-life scenarios to demonstrate how you may have
been mis-sold a car on finance:
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If you'd like to get your compensation claim in before the FCA investigation is concluded to have it lodged in advance you can do so now