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Lloyds Mis-Sold Car Finance

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How To Claim Against LLoyds Bank For Mis-Sold Car Finance

Before embarking on making a claim it is important to know the reason why Lloyds Bank via its subsidiary Black Horse Finance are likely to be made to pay back £Thousands on mis-sold car finance. The Financial Conduct Authority (FCA) has recently embarked on a comprehensive investigation into historical mis-sold car finance loans, expressing serious concerns over potential widespread mis-selling of unfair deals.

At the heart of this inquiry is the examination of a commission model, banned in January 2021, where car dealers were incentivised by Lloyds bank and Barclays Bank in particular to promote more expensive loans, thereby earning higher commissions.  

Car loan finance is usually made through Lloyds Bank via one of its subsidiaries as follows:

Of significant concern to the FCA is the possibility that consumers may have been treated unfairly even prior to the ban, given the lack of adequate information regarding this commission structure.

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Car Dealers Secret Commissions Exposed

In or about 2014, car dealers must inform the consumer who is buying the motor vehicle if there is any commission payable back to the car dealer when they organise a loan for a motor vehicle used to aid with the acquisition. They must also tell them the value of the commission if the car purchaser enquires about the amount of the commission.  The secret commission scandal are similar to that claimed by loans acquired on behalf of borrowers that had attached to it payment protection policies (PPI). See also claims under Plevin concerning secret commissions that are similar to the allegations made here.

Black Horse Finance Has Already Been Made To Pay Out

Lloyds Bank, via its subsidiary Black Horse Finance has already been ordered to pay out compensation for mis-sold car finance by the industry’s watchdog. The mis-selling of car dealer finance  to borrowing consumers found themselves paying higher interest rates due to dealers receiving elevated commissions. The FOS ruled in favour of the consumers, directing Barclays and Black Horse Finance to compensate one with £1,593 and the other with £1,299.

Why Lloyds Bank?

Lloyds Banks through its subsidiary Black Horse Finance Group has been at the heart of mis-selling financial products.  They have partnered with many car sellers across the country which is the reason why recently they has announced that they will be setting aside £450 Million for compensation payouts for mis-selling car finance, see R James Hutcheon Solicitors, specialist in financial mis-selling products:  Mis Sold Car Loans – Lloyds Bank Sets Aside £450 Million.   In addition we have had years of experience fighting against Lloyds Bank and Black Horse Finance on the PPI Scandal.

How To Claim Back Mis Sold Car Finance Against Black Horse

Borrowers from Black Horse Finance who believe they have been victims of mis-sold car loans and secret commissions have recourse to reclaim their rights and seek redress. Here’s is our guide on how customers can claim:

1. Contact us so that we can send out our claim pack: This is early and all done online.There is no need to complete any paper-work.We operate under a no win, no fee agreement so you have nothing to lose by seeking the support of experts solicitors.You only pay us if you win.You can pursue the claim yourself direct, but many prefer to use us to take out the time and hassle of submitting a claim.

2 Gather Documentation: Once you have contacted us it is important to gather all relevant documentation pertaining to the car loan agreement, including the contract, terms and conditions, correspondence with the lender or intermediary, and any other relevant records.

3 Send us the Documentation:  Will request that you send the documentation to us and we will analyse the documents to assess your chances of success.

4  Submit a Claim: We will then contact Black Horse to advise of a claim on your behalf.

5  Claim is then Reviewed by Black Horse:  We will give them an opportunity to admit or deny any claim.

6  Black Horse admits the claim: We will enter into negotiations to settle and pay you your compensation less our fees.

7  Black Horse deny your claim:   The action will then be submitted to the Financial Ombudsman who will assess the claim and advise if they agree with the lender or you.If they deny the claim there may be an opportunity to appeal.If the recommend payment then you will be entitled to compensation.  Note we are not taking any claim to court unless you wish to pay us privately. 

Frequently Asked Questions on Black Horse Mis-sold Car Finance

The following commons questions we are asked by our clients are below:

What If I Do Not Have The Car Finance Loan Agreement?

Black Horse must keep your records for at least six years from the date of the last payment you made under the contract.If that period has expired the documents may no longer exist.However they are duty bound to search for your records.In our experience with mis-sold PPI claims, Banks generally keep records for much longer.If after a thorough search the documents cannot be found, as specialist solicitor we will advise you of your possible options.

How Far Back Can I Claim?

The investigation and therefore your car finance claim can go back to April 2007 until January 2021 when the practice was ceased.

How Long Will It Take to Claim Back My Car Finance Loan?

This is very much dependent on the volume of claims.Certainly nothing will be done at the moment until the watchdog has made full investigation on the mis selling.All claims will be put in hold at this time towards the end of 2024.At this time it is difficult to predict but it is likely to take at least 12 months.

What is the Average Pay Out for Mis sold Car Finance Against Black Horse?

At this time due to the small number of claims that have been determined it is difficult to judge.At this time our estimate of the average Black House payout would be between £1,200 to £1,800.Black Horse have already been ordered to pay £1,299.  This payout by Black Horse finance was based on a loan of £7,619 paying 5.5% interest, the lowest rate available (2.49%).  Therefore higher loan values could mean greater redress.

Do You Undertake Claims Under a No, Win, No Fee Agreement?

Yes, if we receive nothing for you, you pay nothing.  You only pay us if you win. 

Are You Solicitors or a Claims Management Company

We are a firm of Qualified Solicitors and Regulated by the Solicitor Regulation Authority. We are not a claims management company. They are NOT solicitors.

Claim Now Through Expert Solicitors

Secrecy and commission being paid to sellers of loans. We have all heard of this before, notably PPI mis-selling.  The scandals appear to keep on going on and on.  Whilst there is a free scheme you can use, if you don’t have the time or inclination to deal with all the paper work and allegations we can assist you all under our NO WIN, NO FEE, expert service.  We have over 15 years of experience in financial mis-selling and have recovered £Millions on behalf of our clients.

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Lloyds Mis sold Car Finance News

R James Hutcheon Solicitors and The Sunday Times – Mis sold car finance claims

Mis Sold Car Loans – Lloyds Bank Sets Aside £450 Million

Lloyds Bank and Others – Predictions of £10 Billion Mis Sold Car Loans

Cap Charges for Car Loans Misselling

Banks can pay for mis sold car finance claims

Mis Sold Car Loans the New PPI Scandal

Black  Horse Mis Sold Car Finance Claims

Hutcheon Law, The Sunday Times – Mis-sold Car Finance


Mis-sold car loan claims – The New PPI Scandal

Lloyds Mis-selling Business Loans

We possess an excellent track record of acting for Lloyds bank customers in recovering compensation in many legal issues from contract disputes to financial mis-selling of insurance products and services.

Lloyds Business Loan Mis-Selling (Interest rate swap loans)

If you have taken out a Lloyds business loan and was advised to take out a product along side the business loan that was suppose to protect you against the rise of bank loan interest rates, you may have a claim for business loan (swap loan) mis-selling. The FSA(The Financial Services Authority)has looked into the mis-selling of business interest rate swaps and considered that there may be a claim for compensation.

The type of Lloyds business interest rate loan mis-selling are listed below, taken from the FSA web site:

  • swaps– which enables the customer to ‘fix’ their interest rate
  • caps– places a cap on any interest rate rise
  • collars– enables the customer to cap interest rate rises by limiting rate fluctuations to within a simple range
  • structured collars– enables the customer to cap interest rate rises by limiting rate fluctuations to within a range (with a lower ceiling than a simple collar) but involves more complex arrangements if base rate falls below floor limit.

The FSA Financial Conduct Authority, has looked into the mis-selling of Lloyds business interest rate swaps and considered that there may be a claim for compensation. The FSA has provided a review of the interest rate swap loans sold to small to medium size businesses (SMEs) by the four largest banks in the UK.

The four largest banks are listed below:

Barclays Bank mis-sold business interest rate swap loans

RBS Bank mis-sold business interest rate swap loans

Lloyds mis-sold business interest rate swap loans

HSBC mis-sold business interest rate swap loans

After a review of the mis-selling of Lloyds business loans or swap loans, the FSA found that when properly sold, in the right circumstances to the right customers, these products can protect customers against the risk of interest rate changes. However, when sold to ‘non-sophisticated’ customers, likely to be smaller business which wouldn’t necessarily have specific expertise and understanding in this area, some products may not have been appropriate for their needs.

If you are a small to medium size business that has been sold a Lloyds business loan with a swap interest rate product pleasecontact usto see if you have a claim for Lloyds mis-sold interest rate swap compensation. For more information aboutbusiness interest rate swaps mis-selling.

Further Reading

Bank Mis-selling claims

Swap Loans

How Swaps are Sold

Swap Loans In The News

Caravan Park Swap Loans

Business Swap Loans

Swap Loans, No Win, No Fee

Swap Loans Blog

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