Black Horse, a leading provider of car, motorbike, and caravan finance in the UK, has come under scrutiny following a major ruling by the Financial Ombudsman Service in 2024. The decision highlighted cases of mis-sold car finance agreements and opened the door for many customers to file refund claims. If you’ve financed a vehicle through Black Horse, it’s worth reviewing your agreement to see if you’ve been affected.

Understanding your rights could lead to a refund or compensation. So here’s a comprehensive guide on the things you need to know about Black Horse refund claims.

What Are Black Horse Refund Claims?

Black Horse finance refund claims allow customers to seek compensation for issues with their finance agreements, which usually arise when the borrowers believe they have mis-sold a car, motorbike, or caravan finance product.

Refund claims could cover situations for all or any of the following:

Unfair contract terms
Undisclosed fees
Incorrect advice during the sales process
And many others.

Customers may be entitled to a refund for payments they’ve already made or compensation for unfair charges.

The Financial Ombudsman’s 2024 ruling against Black Horse was a key turning point. It confirmed that many finance agreements had been mis-sold, leading to the possibility of refunds for affected individuals. This ruling opened the door for more than a million people to come forward and challenge their car finance agreements.

Why You Might Be Eligible for a Refund

You might be eligible for a refund if Black Horse failed to clearly explain the terms of your agreement or if you were misled during the sales process. Mis-selling occurs when a finance product is not suitable for the customer’s needs, or key information, like additional charges, was not properly disclosed.

If you feel that your finance agreement left out critical details or that you were given incorrect advice, you could have grounds for a refund claim.

Some customers find they’ve been charged extra fees they weren’t aware of, or their contract contained unclear terms. These situations, along with hidden costs or misrepresented finance terms, could all make you eligible to claim a refund from Black Horse.

How to Identify If You’ve Been Mis-Sold

To determine if you’ve been mis-sold, start by reviewing your original Black Horse finance agreement. Here are some of the questions to ask yourself.

Were the interest rates, charges, and repayment terms not clearly outlined?
Were there certain fees, conditions, features, or protections that were never fully explained to me?
Was I pushed to opt for a higher-interest loan?
Is the finance product I have not suitable for my needs or financial situation?
Was I pressured to sign the finance agreement?
Are there discrepancies between what was promised and what was delivered?

If you answered yes to any of the above-mentioned questions, then you might have been mis-sold.

Steps to File a Refund Claim

Filing a refund claim with Black Horse is straightforward.

Gather all the documents related to your finance agreement, including contracts, payment statements, and any communication you had with the lender.
Contact Black Horse or their complaints department to formally raise your concerns. Be clear about why you believe you were mis-sold and provide any supporting evidence.
If Black Horse doesn’t respond within a reasonable timeframe or rejects your claim, you can escalate the issue to the Financial Ombudsman Service. They will independently review your case and decide if you’re owed a refund or compensation.

Filing a claim early ensures you don’t miss any deadlines.

Time Limits and Deadlines

There are strict time limits for filing a refund claim with Black Horse, and they are either of the following, whichever comes later:

Within six years after the finance deal was made
Within three years of realising that you were mis-sold

These deadlines are important to keep in mind, as failing to act within the time frame could mean losing your right to claim.

If you’re unsure when the mis-selling took place or how much time you have left, it’s best to seek advice as soon as possible. The Financial Ombudsman Service can also assist if your claim is delayed or contested, but acting promptly increases your chances of success.

Additionally, you can also seek the professional help of a claims management company or a law firm specialising in processing finance claims.

What to Expect After Filing a Claim

Once you file a refund claim with Black Horse, they will investigate your case and may involve the following:

Assessing your agreement
Reviewing how the product was sold to you
Determining whether you were misled
Requesting you to provide more information or documentation to support your claim

Under the UK regulation, lenders, such as Black Horse, are supposed to respond to car finance claims within eight weeks. For those involving discretionary commission arrangements, however, the FCA has temporarily extended the eight-week deadline until 4 December 2025.

If Black Horse agrees that you were mis-sold, they will offer a refund or compensation. This could include a full refund of any overpayments or a reduction in the remaining balance on your finance agreement. If the claim is denied, you can take your case to the Financial Ombudsman for further review.

Conclusion

It’s essential to regularly review your Black Horse finance agreement to ensure everything is accurate and fair. Many customers don’t realise they’ve been mis-sold until much later, so it’s always worth checking the details. If you suspect mis-selling, overcharging, or errors, taking action early can protect your finances.

Even if you’re unsure whether you have a claim, seeking professional advice or reviewing your case with the Financial Ombudsman can help. Don’t overlook the potential for a refund if something feels off with your agreement.