Bank of Scotland Car Finance Claims

If you took out a PCP or car finance agreement with Bank of Scotland between 2007 and 2021, you could be eligible for compensation if the deal was mis-sold. Many people were not properly informed about important details such as balloon payments, mileage limits, and interest rates.

In some cases, the Bank of Scotland finance dealers earned hidden commissions from lenders without disclosing them, which could have led to higher borrowing costs. If your agreement was unsuitable or affordability checks were not y carried out correctly, you may have a strong claim for compensation.

Payouts for mis-sold Bank of Scotland finance agreements are averaging over £1,100, with some drivers recovering £5,000 or more. You can start a claim with a specialist or escalate it to the Financial Ombudsman Service if it's needed.

You may be eligible to claim a refund from Bank of Scotland if your PCP or HP car finance agreement involved a discretionary commission arrangement. Many customers who bought vehicles before January 2021 were not given full details about interest rates, commissions, or dealer-lender relationships, which could make the agreement mis-sold.

You bought a car on PCP finance with Bank of Scotland before January 2021.
You paid a higher-than-average interest rate without a clear explanation.
The Bank of Scotland or the dealership failed to carry out proper affordability checks.
The relationship between Bank of Scotland and the car dealer was not disclosed to you.
You were not told about sales commissions influencing your finance terms.

If Bank of Scotland or the car dealership you used failed to be fully transparent about commissions or financial relationships, you may have entered into the agreement without complete information. This lack of disclosure can be grounds for a refund claim.

Bank of Scotland PCP Claims - Key Facts Slider

Bank of Scotland’s Role in the Car Finance Market

Bank of Scotland, part of Lloyds Banking Group, has been a major provider of car finance through its Black Horse division. Before 2021, some of their agreements included dealer-paid commissions, although Bank of Scotland stated they did not use discretionary commission models. However, many customers may still have been unaware that commissions were influencing the cost of their finance deals.

FCA Investigation into Bank of Scotland

The FCA is currently investigating Bank of Scotland and other lenders over historic motor finance sales. Discretionary commissions, now banned, allowed brokers to increase interest rates to earn more money without informing borrowers. The investigation could lead to an industry-wide redress scheme covering many Black Horse and Bank of Scotland customers.

Court of Appeal Ruling Affects Bank of Scotland

In 2024, the Court of Appeal ruled that undisclosed commissions could make car finance agreements unlawful. This ruling widened the scope of potential claims against Bank of Scotland, even where fixed-rate commissions were used, if customers were not clearly informed about commissions.

Bank of Scotland’s Compensation Provision

Lloyds Banking Group, Bank of Scotland’s parent company, has set aside £450 million to cover possible mis-sold motor finance claims. Analysts predict their final compensation bill could rise to over £1.5 billion, depending on the outcome of the FCA’s review and further court rulings.

Impact on Bank of Scotland Customers

If you took out a PCP or HP finance agreement with Bank of Scotland or Black Horse before 28 January 2021, you could be owed a refund. Many agreements included commissions that were not disclosed to borrowers, meaning you may be eligible for compensation.

PCP Car Finance Claims - Refund Reasons Section

Are You Due a PCP Refund?

Common reasons why millions of drivers may be eligible for compensation:

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Interest Rates Inflated

Dealers set higher rates to boost commission, costing you more over the term of your PCP agreement.

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Hidden Commissions

Brokers often failed to disclose commission payments, breaching transparency rules on finance deals.

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Limited Finance Options

Many drivers were only offered PCP plans that benefited the dealership rather than providing fair alternatives.

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No Clear Explanation

Important information about car finance products was often not properly explained before signing agreements.

Frequently Asked Questions

How can I check if commission was added to my Bank of Scotland car finance?

You can request commission details directly from Bank of Scotland by submitting a finance disclosure request. It’s also worth reviewing your original finance documents or checking your credit history for any references to Bank of Scotland car finance.

How do I start a mis-sold PCP claim against Bank of Scotland?

You can begin by submitting a complaint directly to Bank of Scotland, explaining why you believe the finance was mis-sold. If they do not reply within eight weeks, or you are unhappy with their response, you can escalate the case to the Financial Ombudsman Service.

Can I claim against Bank of Scotland for more than one finance agreement?

Yes. If you had multiple car finance agreements through Bank of Scotland, you can submit a separate claim for each one. Each agreement is assessed individually based on its own circumstances.

How long does a PCP refund claim against Bank of Scotland take?

Typically, a direct claim with Bank of Scotland takes a few weeks. If your case goes to the Financial Ombudsman, the process can take several months, depending on complexity and caseload.

Can I make a Bank of Scotland PCP claim without using a claims management company?

Absolutely. You can raise a mis-selling complaint yourself directly with Bank of Scotland without paying any fees. If needed, you can later refer your case to the Financial Ombudsman Service for free support.

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Bank of Scotland PCP Claim Key Facts