Black Horse Finance is one of the UK's biggest car finance lenders — and one of the most significant in the FCA's mis-selling investigation. If you had a car finance agreement with Black Horse between April 2007 and January 2021, there is a strong chance you were overcharged due to a hidden commission arrangement. Here is everything you need to know about making a claim and getting your money back.
What Is Black Horse Finance?
Black Horse Finance is a trading name of Lloyds Bank plc and is part of the Lloyds Banking Group — one of the UK's largest financial institutions. Black Horse is among the top motor finance lenders in Britain, providing PCP and HP agreements through thousands of car dealerships across the country.
Because Black Horse operated through dealer networks, they were subject to the same discretionary commission arrangement (DCA) rules as other lenders. Under these arrangements, dealers were secretly permitted to increase the interest rate on a customer's finance agreement — and keep the extra commission for themselves. This inflated the cost of borrowing for millions of customers who had no idea it was happening.
Why Lloyds Set Aside £1.95 Billion
In February 2024, Lloyds Banking Group confirmed it had set aside £450 million as an initial provision for motor finance mis-selling claims. By the end of 2024, this figure had grown significantly as the scale of the issue became clearer. The total provision now stands at £1.95 billion — one of the largest amounts set aside by any single UK financial institution in connection with the FCA's motor finance investigation.
The provision reflects the number of Black Horse agreements that are likely to be subject to valid claims, the expected average compensation per customer, and the legal and administrative costs of processing the redress. The fact that Lloyds has set aside such a large sum is a strong signal that the bank itself expects a substantial number of successful claims.
Are You Eligible to Claim Against Black Horse Finance?
You are likely eligible to make a Black Horse Finance claim if all of the following apply:
- You had a PCP or HP car finance agreement (not a lease)
- The agreement was taken out between April 2007 and January 2021
- The finance was arranged through a car dealer (not directly with a bank)
- You were a UK resident at the time of the agreement
- The lender on your agreement was Black Horse Finance (or Lloyds Bank plc)
You do not need to have kept the car, completed all payments, or have experienced any obvious financial difficulty. The claim is about the hidden commission arrangement at the time of sale — not your subsequent payment history.
How Much Could You Get from a Black Horse Finance Claim?
The amount of compensation depends primarily on three factors: the size of your original finance agreement, the interest rate that was charged, and how much of the rate was inflated due to the discretionary commission arrangement.
Based on estimates from consumer law specialists and the FCA's own modelling:
- Customers with smaller agreements (£5,000–£10,000) may receive £500–£1,500
- Customers with mid-range agreements (£10,000–£20,000) may receive £1,200–£3,000
- Customers with larger agreements (£20,000+) may receive £2,500–£5,000 or more
Compensation will include the difference between the interest rate you were charged and the rate you should have received — plus interest on that overpayment calculated at 8% per year. For a detailed breakdown of how compensation is calculated, see our dedicated guide.
Find Out How Much Your Black Horse Claim Is Worth
Free eligibility check. No documents needed. No Win No Fee. Handled by specialist solicitors.
Check My Eligibility FreeHow to Make a Black Horse Finance Claim
The process for making a claim against Black Horse Finance is straightforward. You do not need to have kept your original paperwork, and you do not need to contact Black Horse directly yourself.
- Complete the free eligibility check at motorredress.co.uk. This takes 60 seconds and tells you immediately whether your agreement is likely to qualify.
- Register your details. We will need your name, date of birth, and approximate details about the agreement (year, lender if known, vehicle type). No documents are required at this stage.
- We submit a formal complaint on your behalf to Black Horse Finance and request all relevant records from your agreement using your statutory right of access.
- Black Horse investigates and must respond within the FCA's prescribed timeframe. If they reject the claim, we escalate to the Financial Ombudsman Service (FOS) or pursue it through the courts.
- You receive compensation — paid directly to you, minus our fee only if we win.
What If Black Horse Has Already Rejected Your Complaint?
Many customers who complained directly to Black Horse Finance received a rejection letter — often citing that the complaint was "outside our current complaint handling window" or that the FCA review is still ongoing. This is a standard holding response.
MotorRedress can review any previous rejection and advise on the best next steps. In many cases, submitting a more detailed complaint — supported by the specific legal grounds established in Johnson v FirstRand Bank (Black Horse) — will achieve a different outcome.
The Johnson v FirstRand (Black Horse) Supreme Court Case
It is worth noting that Black Horse Finance was directly named as a defendant in the landmark case Johnson v FirstRand Bank Ltd (London Branch) t/a Black Horse, which was decided by the Court of Appeal in October 2024 and is now proceeding to the Supreme Court.
The Court of Appeal ruled that lenders had a fiduciary duty to disclose commission arrangements to borrowers — and that concealing this information made the agreement unlawful. This ruling is directly applicable to Black Horse Finance customers and strengthens the legal basis for claims significantly.
Read our full guide to the Johnson v FirstRand Supreme Court ruling for the legal background in plain English.
Deadline: 29 July 2026
The FCA has set a deadline of 29 July 2026 for consumers to register motor finance complaints. After this date, it may no longer be possible to bring new claims under the FCA's redress scheme. If you believe you had a Black Horse Finance agreement between 2007 and 2021, do not wait.
For more information on the deadline and why it matters, see our guide: PCP Claim Deadline 2026 — What You Need to Know.