Moneybarn Car Finance Claim: Was Your Hire Purchase Agreement Mis-Sold?

Who Is Moneybarn?

Moneybarn is a specialist vehicle finance lender focused on providing hire purchase agreements to UK consumers who may have been declined by mainstream lenders due to poor or limited credit history. Now owned by Provident Financial Group, Moneybarn operates through a network of car dealerships and brokers rather than offering finance directly to consumers.

Because Moneybarn's customers typically have fewer finance options available to them, they may have been particularly vulnerable to the effects of discretionary commission arrangements. Customers with limited credit options are less likely to shop around or negotiate their interest rate — making the undisclosed commission incentive especially harmful in this context.

Like other lenders operating during the DCA period, Moneybarn was part of a system the FCA has identified as causing widespread consumer harm across the UK motor finance industry.

How Moneybarn Agreements Worked

When a car dealer or broker arranged Moneybarn finance on your behalf, the process typically worked like this:

• You chose a car and the dealer or broker offered to arrange finance on your behalf.
• The dealer applied to Moneybarn for a hire purchase agreement on your behalf.
• Moneybarn set a base interest rate — but crucially, gave the dealer or broker the power to adjust this rate upward.
• The higher the interest rate set, the more commission Moneybarn paid to the dealer or broker.
• 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 Moneybarn Agreements May Have Been Mis-Sold

• Commission not disclosed: Most customers were never told the dealer or broker received commission from Moneybarn.
• Inflated interest rates on already high base rates: Because Moneybarn serves higher-risk customers, base interest rates were already elevated. DCA-inflated rates on top of this may have caused significant financial harm.
• Conflict of interest: The dealer was acting as your credit broker while simultaneously being paid more by the lender the more they charged you.
• Vulnerability: Customers with poor credit histories had fewer alternatives, reducing their ability to negotiate or walk away.

Signs Your Moneybarn Agreement May Qualify

• Your car was bought through a dealership or broker that arranged Moneybarn finance
• Finance was arranged at the point of sale, not independently sourced
• Your agreement was signed between January 2007 and January 2021
• The agreement was a hire purchase or conditional sale agreement
• You were not explicitly told about the commission arrangement or given the option to shop around

How to Check Your Moneybarn Agreement

• Contact Moneybarn directly: You can request a copy of your original credit agreement under the Consumer Credit Act 1974.
• Check your credit file: Experian, Equifax, or TransUnion will show historical credit agreements including lender names and amounts.
• Review old paperwork: Look for the hire purchase agreement 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 Moneybarn 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.