How do I make a Black Horse PCP compensation claim?

To claim against Black Horse: (1) Write a formal complaint to Black Horse (part of Lloyds Banking Group) referencing the FCA's motor finance review and the October 2024 Supreme Court ruling. (2) State that you believe your agreement included a discretionary commission arrangement (DCA) and request disclosure. (3) If Black Horse doesn't respond within 8 weeks or rejects your complaint, escalate to the Financial Ombudsman Service (FOS) for free.

Is Black Horse covered by the FCA motor finance review?

Yes. Black Horse is one of the largest motor finance providers in the UK and is central to the FCA's motor finance review. As part of the Lloyds Banking Group, Black Horse used discretionary commission arrangements (DCAs) on PCP and HP agreements prior to January 2021. Black Horse has been a key defendant in the group litigation that led to the Supreme Court's landmark October 2024 ruling.

How much compensation could I get from Black Horse?

The FCA estimates average DCA overcharges of approximately £1,100, but individual amounts vary significantly based on the loan amount and the specific commission rate applied. For a typical Black Horse PCP agreement of £15,000–£20,000 at 9–12% APR, the estimated overcharge ranges from £800 to £2,500+, plus 8% statutory interest from the agreement date.

Black Horse PCP Claim 2025 — How to Claim Lloyds Car Finance Compensation

Quick answer

Can I claim compensation from Black Horse?

Yes — if your PCP or HP finance agreement was arranged through a car dealer using Black Horse financing between April 2007 and January 2021. Black Horse (part of Lloyds Banking Group) is one of the primary targets of the FCA's motor finance review and the Supreme Court's October 2024 ruling on undisclosed commissions. You can complain directly to Black Horse for free, or use the calculator below to estimate your compensation before deciding next steps.

🏦 Lloyds Banking Group✓ FCA confirmed⏱ 6-year limit

Black Horse background

Why Black Horse is at the centre of the PCP scandal

Black Horse Limited is the motor finance division of Lloyds Banking Group — one of the UK's largest financial institutions. Black Horse provides PCP, HP, and conditional sale finance through car dealers across the UK and is estimated to have provided finance on millions of vehicle purchases.

During the FCA's investigation into motor finance, Black Horse was identified as one of the largest users of discretionary commission arrangements (DCAs). The FCA found that Black Horse dealers could set interest rates within a range, earning higher commissions for higher rates — an arrangement the regulator found caused widespread harm to consumers.

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Black Horse's complaints response is currently pausedFollowing the FCA's motor finance review and the Supreme Court ruling, Black Horse (in common with most major lenders) has paused its standard complaint response process pending the FCA's formal redress scheme. Your complaint will be acknowledged but may not receive a substantive response until the scheme is established. This does not mean you shouldn't complain — registering your complaint is essential.

Free calculator

Estimate your Black Horse compensation

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Black Horse PCP Calculator

Based on FCA average DCA uplift methodology

Finance amount (£)

APR on agreement (%)

Term (months)

Agreement start year

Total interest estimated—

DCA overcharge (25% uplift)—

Statutory interest (8% p.a.)—

Total estimated compensation—

Estimates use FCA average DCA uplift of 25% of total interest. Statutory interest at 8% p.a. from mid-point of agreement. Not legal advice.

Step-by-step guide

How to complain to Black Horse — step by step

Locate your Black Horse agreement details

Find your original finance agreement (check emails, paperwork, or your car dealer documentation). You need your agreement number, the finance amount, APR, and start date. If you can't find it, contact Black Horse directly to request a copy — they must provide it.

Write a formal complaint to Black Horse

Send your complaint to: Black Horse Ltd, Customer Relations, Charlton Place, Andover, Hampshire, SP10 1RE or email via their website complaints form. State clearly: (a) that you believe a DCA applied to your agreement; (b) that you were not told the dealer could set your rate; (c) that you are requesting compensation under the FCA motor finance review and Supreme Court ruling.

Request disclosure of the commission arrangement

Ask specifically whether a discretionary commission arrangement applied to your agreement, the rate of commission paid to the dealer, and whether the dealer had any ability to set or influence your interest rate. This creates a formal record of your enquiry and the information Black Horse holds.

Escalate to the FOS if no substantive response within 8 weeks

Black Horse is currently operating under FCA-directed complaint pauses, meaning you may not receive a substantive response quickly. You have the right to escalate to the Financial Ombudsman Service after 8 weeks of no response, or immediately if Black Horse issues a final rejection letter.

Evidence guide

What you need to claim from Black Horse

📋 For a Black Horse PCP claim

Original finance agreement — your Black Horse PCP or HP agreement showing the agreement number, amount, APR, and start date.

Dealer invoice or purchase confirmation — evidence that the finance was arranged through a car dealer (not directly with Black Horse).

Any correspondence from Black Horse — statements, annual notices, or any letters from Black Horse about the agreement.

Monthly payment records — bank statements showing payments to Black Horse. Useful but not essential — Black Horse holds this data.

Final settlement or return confirmation — if you paid off or returned the vehicle, this evidences the agreement is closed but does not affect your claim.

Scenarios

Black Horse PCP claim examples

Example 1 — Typical PCP

Ford Dealer, 2018 — £14,000 Black Horse PCP at 9.9% APR over 36 months

Estimated total interest: £2,200. DCA overcharge at 25%: £550. Statutory interest at 8% p.a. for 7 years: £308. Total estimated compensation: £858. Agreement fell clearly within DCA period (pre-Jan 2021) and dealer-arranged.

Estimated total: £858

Example 2 — Higher-value PCP

BMW Dealer, 2016 — £28,000 Black Horse PCP at 12% APR over 48 months

Estimated total interest: £7,200. DCA overcharge at 25%: £1,800. Statutory interest at 8% p.a. for 9 years: £1,296. Total estimated compensation: £3,096. Higher rate and longer period result in substantially larger estimated claim.

Estimated total: £3,096

Example 3 — Multiple agreements

Two Black Horse agreements — 2015 and 2019

Combined: two separate PCP agreements, both dealer-arranged through Black Horse. Each represents a separate DCA claim. Total estimated compensation across both agreements: £1,400–£3,800 depending on amounts and rates.

Estimated total: £1,400–£3,800 (two claims)

FAQs

Black Horse PCP claims — questions answered

Why is my Black Horse complaint being paused?+

The FCA directed major motor finance lenders — including Black Horse — to pause substantive complaint responses while the regulator develops its formal consumer redress scheme. This is intended to ensure consistency in how consumers are compensated. Your complaint will still be registered, which preserves your position. The FCA has indicated the redress scheme will be established by late 2025 or 2026, though this timeline may change.

Does it matter that I've paid off the Black Horse agreement?+

No — the claim relates to the overcharge at the time of the agreement, not to the current status of the loan. Whether you've paid it off, still paying it, returned the vehicle, or had it repossessed does not affect your right to claim the DCA overcharge plus statutory interest.

Can I use a no win, no fee solicitor for a Black Horse claim?+

Yes. Many solicitors and FCA-regulated claims management companies handle Black Horse PCP claims on a no win, no fee basis. Their fee is typically 25–36% + VAT of any compensation received. You should always compare the DIY route (complaining directly, escalating to FOS for free) against using a specialist — for straightforward cases, the FOS route costs nothing.

What brands did Black Horse finance?+

Black Horse provided finance across all major car brands through franchised dealerships — Ford, BMW, Audi, Vauxhall, Toyota, Kia, Mazda, Hyundai, and many others. If a dealer offered "Lloyds Bank" finance or "Black Horse" branded finance at the time of your purchase, that confirms it was a Black Horse agreement regardless of the car brand.

Related lender guides

Other PCP lender-specific claim guides

Disclaimer: Black Horse compensation estimates use FCA methodology and are indicative only. Black Horse complaint responses are currently paused under FCA direction. Always keep copies of all correspondence. This is not legal advice. ClaimValue is not regulated by the FCA or SRA.