Home › Lenders › Black Horse Limited

Black Horse car finance claims

If you bought a car, van or motorbike on finance with Black Horse, the dealer may have earned commission you weren't told about. If so, you could be owed compensation.

Hire purchase (HP) or PCP with Black Horse
Taken out from April 2007 to November 2024
Even if it's paid off or the vehicle is sold

Start your claim See what's covered

Last checked 7 October 2026

Could your Black Horse agreement be covered?

Black Horse is the motor finance arm of Lloyds Banking Group, which also owns Halifax, Bank of Scotland and Lex, and one of the biggest car finance lenders in the UK. It lends through dealers under more than 70 trading names, covering cars, motorbikes and leisure vehicles such as caravans and motorhomes.

Under the FCA's compensation scheme, an agreement is treated as unfair if any of these applied and weren't properly explained to you:

The dealer could raise your interest rate to earn more commission (a discretionary commission arrangement). These were banned from January 2021.
The commission was high: at least 39% of the total cost of credit and at least 10% of the amount borrowed.
The dealer had a tie with the lender that gave it first refusal or exclusivity.

Agreements with no interest (0% finance), and agreements where the commission was £150 or less (£120 or less before April 2014), aren't covered.

Where Black Horse stands on the scheme

Lloyds considered a legal challenge but said in April 2026 that it would go ahead with the FCA's scheme instead. Lloyds has set aside around £2 billion to cover motor finance compensation.

Accepting the scheme doesn't mean Black Horse can pay compensation yet. Parts of the scheme are suspended while the Upper Tribunal hears the challenges, in December 2026 or February 2027, so lenders don't yet have to calculate or pay compensation under it.

How dealer commission worked

Most car finance was arranged at the dealership. The dealer acted as a credit broker and Black Horse, like other lenders, paid commission for arranging the finance. The problem wasn't the commission itself. It was that customers usually weren't told how much it was, or that the dealer could choose a higher interest rate to earn more. Our guide to discretionary commission arrangements shows how that worked, and our guide to the FCA scheme covers how compensation is calculated.

Why claim through us

Most people had more than one car on finance, and plenty can't remember every lender. We introduce you to Consultation Claims Ltd, an FCA-authorised claims management company, who handle all of your motor finance claims from one form. More about who we are.

Every agreement found for you. A soft credit search finds motor finance in your name with Black Horse and any other lender, including ones you've forgotten. It doesn't affect your credit score.
No dealing with lenders. They send a formal complaint to each lender and handle the replies, so you don't have to.
No paperwork. You don't need your old agreements or statements.
No upfront cost. You only pay if a complaint succeeds, and you see the fee before you sign. See fees

Start your claim

You don't have to use a claims management company. You can complain to Black Horse directly (the FCA lists every lender's complaint details), and then to the Financial Ombudsman Service, for free.

Black Horse claim questions

My car finance was with Halifax, Bank of Scotland or Lex. Can I claim?

Possibly. Halifax, Bank of Scotland and Lex are all part of Lloyds Banking Group, alongside Black Horse. Motor finance from a Lloyds company taken out between April 2007 and November 2024 can be covered. Leasing (contract hire), such as most Lex Autolease agreements, is a hire agreement rather than credit, so it generally falls outside the scheme.

My agreement doesn't say Black Horse. Could it still be them?

Possibly. Black Horse lends under more than 70 trading names, many of them car, motorbike or caravan brands. The FCA's list of lenders shows them all, or a soft credit search can find agreements for you.

Can I claim if my Black Horse finance is paid off?

Yes. What matters is when you took the finance out. Black Horse agreements taken out from 6 April 2007 to 1 November 2024 can be covered even if they've ended or you've sold the vehicle.

I've lost my paperwork. Can I still claim?

Yes. You don't need your old agreement. If you use Consultation Claims, they find your agreements with a soft credit search, which doesn't affect your credit score. If you complain to Black Horse yourself, give your name, previous addresses and roughly when you had the vehicle.

When will Black Horse pay compensation?

Nobody can say yet. Parts of the FCA scheme are suspended while the Upper Tribunal hears legal challenges, in December 2026 or February 2027. Lenders don't have to pay compensation under the scheme until that's decided. Complaints that fall outside the scheme are still being handled normally. Where the scheme stands.

How much could I get from Black Horse?

It depends on your agreement. When it finalised the scheme, the FCA estimated an average of around £830 per agreement across all lenders. Some people will get more, some less, and some agreements won't qualify. How compensation is worked out.

Do I have to use a claims company?

No. You can complain to Black Horse yourself, and then to the Financial Ombudsman Service, for free. Using Consultation Claims means they find all your agreements and deal with each lender for you, in return for a fee if a complaint succeeds.

Sources

Facts on this page were checked on 7 October 2026 against:

The scheme rules come from the FCA's policy statement PS26/3 and its statement on the partial suspension.