Black Horse Car Finance Claim: Was Your PCP or Hire Purchase Mis-Sold?

Who Is Black Horse Finance?

Black Horse Finance is a trading name of Lloyds Bank plc and operates as one of the primary car finance divisions within Lloyds Banking Group. For decades, Black Horse has provided finance to millions of UK consumers purchasing cars through franchised dealerships, independent car retailers, and motorcycle dealers.

As a major institutional lender working directly with dealership networks, Black Horse was deeply embedded in the discretionary commission arrangement (DCA) system that the FCA has now identified as a widespread source of consumer harm.

How Black Horse Finance Agreements Worked

When you visited a car dealership that offered Black Horse finance, the process typically worked like this:

• You chose a car and the dealer offered to arrange finance on your behalf.
• The dealer applied to Black Horse Finance for a loan on your behalf.
• Black Horse set a base interest rate — but crucially, gave the dealer the power to adjust this rate upward.
• The higher the interest rate the dealer set, the more commission Black Horse paid to the dealer.
• You were typically not told that the dealer was receiving commission, or that it was linked to your interest rate.

This arrangement — known as a discretionary commission arrangement (DCA) — was banned by the FCA in January 2021 precisely because it created a direct financial incentive for dealers to overcharge customers.

Why Some Black Horse Agreements May Have Been Mis-Sold

Under FCA Consumer Credit rules and common law principles around fair dealing, lenders and brokers have a duty to act in customers' best interests. The key failures identified by the FCA include:

• Commission not disclosed: Most customers were never told the dealer received commission from Black Horse.
• Inflated interest rates: Dealers had every incentive to set the highest rate you would accept rather than the lowest available.
• Conflict of interest: The dealer was acting as your credit broker while simultaneously being paid more by the lender the more they charged you.
• Lack of meaningful choice: Customers who didn't know about the commission structure couldn't meaningfully negotiate their rate.

Signs Your Black Horse Finance May Qualify

• Your car was bought through a franchised or independent dealership (not directly from Black Horse)
• Finance was arranged at the point of sale, not independently sourced
• Your agreement was signed between January 2007 and January 2021
• The agreement was PCP, hire purchase, or a conditional sale agreement
• You were not explicitly told about the commission arrangement or given the option to shop around

How to Check Your Black Horse Agreement

To confirm the details of your finance agreement, you have several options:

• Contact Black Horse directly: You can request a copy of your original credit agreement. They are legally required to provide this under the Consumer Credit Act 1974.
• Check your credit file: Services like Experian, Equifax, or TransUnion will show historical credit agreements, including lender names and amounts.
• Review old paperwork: Look for the finance agreement document you signed at the dealership. The lender name, APR, and agreement number will be listed.

The Claim Process

1. Submit your details using the form below.
2. Case review: An FCA-authorised claims specialist will assess your agreement and determine whether you have a valid claim.
3. Claim submitted: If eligible, the specialist will handle all correspondence with Black Horse Finance and the Financial Ombudsman if required.
4. Compensation paid: If your claim succeeds, you receive your payout directly. Most claims management companies operate on a no-win, no-fee basis.