.png)
If you financed a car through Lloyds Banking Group between 2007 and 2021, your agreement was most likely arranged through Black Horse, the group's dedicated motor finance arm, and it is worth checking whether the commission behind it was properly disclosed.
Black Horse has long been one of the UK's largest providers of dealership-arranged car finance, offering PCP and Hire Purchase agreements through franchised and independent dealers across the country. Because it operates through dealer networks rather than directly with customers, some Lloyds customers do not immediately connect their agreement to the Lloyds name at all.
This guide explains why Black Horse agreements are affected, how to check whether yours may qualify, and what tends to happen once a claim is submitted.
Why Lloyds (Black Horse) Agreements May Have Involved Mis-Selling
Black Horse was one of many lenders that used discretionary commission arrangements before the FCA banned the practice in 2021. Under this model, the dealer arranging your finance could set the interest rate within a range agreed with Black Horse, and their commission increased as the rate rose, typically without this being explained to you in clear terms.
Lloyds Banking Group has said it will maintain financial provisions to cover the potential cost of handling motor finance compensation claims, reflecting the scale of the issue across the industry rather than confirming the outcome of any individual case.
Black Horse's Role as Lloyds' Motor Finance Arm
Black Horse does not sell cars directly. It provides the finance behind dealership sales, which means many customers signed their agreement without necessarily realising Black Horse, rather than Lloyds itself, was the lender. If your paperwork shows Black Horse rather than Lloyds Bank, this is still a Lloyds Banking Group agreement for the purposes of a claim.
How to Check If Your Black Horse Agreement Qualifies
Your agreement is more likely to qualify if it was taken out between 2007 and 2021, was arranged through a dealer or broker rather than negotiated directly with the lender, and if you were not clearly told how the dealer's commission was calculated or that it could vary with your interest rate.
You do not need to track down your original paperwork before checking. PCP Missold's free eligibility check reviews your circumstances and, where possible, helps identify the finance agreement on your behalf before any claim goes further.
What Happens After You Submit a Claim
Once your eligibility is confirmed, a formal complaint is submitted to Black Horse setting out why the commission arrangement on your agreement may have been unfair. Black Horse is required to investigate and respond within FCA-set timeframes.
If Black Horse does not resolve the complaint satisfactorily, it can be escalated to the Financial Ombudsman Service for an independent decision.
It is worth noting that the FCA's industry-wide motor finance redress scheme, set out in PS26/3, is currently subject to Upper Tribunal proceedings after a legal challenge from several lenders, and parts of the scheme have been suspended while this is resolved. This means timescales for Black Horse claims may shift as the legal position develops, and no outcome or payment amount can be guaranteed in advance.
Public reporting confirms Lloyds Banking Group has continued to hold a significant financial provision specifically to handle the cost of processing motor finance compensation claims across its lending book, including Black Horse agreements.
Car Dealer Magazine, Lloyds sticking with provision for motor finance compensation claims, 2026. Read the report
Important Information
DISCLAIMER
This article is intended for general information only and does not constitute financial or legal advice. Whether a Black Horse or Lloyds agreement qualifies for compensation depends on its specific facts and cannot be guaranteed in advance. The regulatory position, including the FCA's PS26/3 redress scheme, remains subject to ongoing Upper Tribunal proceedings and may change. This article was accurate at the time of publication.
Frequently Asked Questions
Did Lloyds mis-sell PCP agreements through Black Horse?
Not every Black Horse agreement was mis-sold, but many included discretionary commission arrangements that were not clearly disclosed to customers between 2007 and 2021. If your dealer's commission depended on the interest rate you were charged and this was not explained, your agreement may qualify for a claim.
My paperwork says Black Horse, not Lloyds. Does that matter?
No. Black Horse is the motor finance arm of Lloyds Banking Group, so an agreement in the Black Horse name is treated as a Lloyds Banking Group agreement for the purposes of a claim.
Is there a deadline to bring a Black Horse claim?
Complaint handling rules are set by the FCA and are currently evolving as the PS26/3 redress scheme works through Upper Tribunal proceedings. Deadlines and processes may change as the legal position develops, so it is worth checking your eligibility sooner rather than later.
Will I need to go to court to claim against Black Horse?
Most claims are resolved through the lender's own complaints process or, if unresolved, escalated to the Financial Ombudsman Service. Court action is rare and is not something PCP Missold requires you to pursue.
Key Takeaways
Discretionary commission arrangements on Black Horse agreements between 2007 and 2021 may mean you are owed a review of how your Lloyds finance was arranged.
- Black Horse agreements from 2007 to 2021 may have included undisclosed commission arrangements
- An agreement under the Black Horse name is still a Lloyds Banking Group agreement for claims purposes
- The regulatory picture is still developing, so checking now means you are ready as it progresses
If you are unsure whether your Lloyds or Black Horse agreement is affected, the quickest way to find out is a free, no-obligation eligibility check.
TAKE THE NEXT STEP
.png)
