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Start with the lender, not a claims company. If you used hire purchase, PCP or conditional-sale finance to buy a motorcycle between 6 April 2007 and 1 November 2024, the Financial Conduct Authority (FCA) says you may be owed compensation, but eligibility is not automatic. Check the agreement, dealer and lender, identify any undisclosed commission or other unfairness, submit a written complaint, and keep the evidence. The Financial Ombudsman Service is free if the lender rejects the complaint or does not respond within the required period.
What “mis-sold motorcycle finance” means
Mis-selling is not limited to a dealer receiving commission. It can include a misleading statement that induced you to sign, finance that was unaffordable when arranged, inadequate disclosure of commission, contractual ties that restricted the dealer’s ability to offer an impartial rate, or charges and terms that were not properly explained.
The FCA’s historical motor-finance scope expressly includes motorcycles. Its consumer guidance says: “If you used finance to buy a car, motorbike or van between 6 April 2007 and 1 November 2024 you may be owed compensation.” That wording describes a possible entitlement, not a guaranteed payment. The agreement date, finance type, lender, dealer or broker and the facts of the sale all matter.
Check whether your agreement falls within the FCA’s scope
Dates and finance types
Locate the date the finance began. Agreements made from 6 April 2007 through 1 November 2024 are within the period identified by the FCA for potential scheme eligibility. This does not mean every agreement in that period qualifies. Typical in-scope products are regulated hire purchase, personal contract purchase (PCP) and conditional-sale agreements used to acquire the motorcycle.
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Personal contract hire (a lease) is among the potential exclusions identified by the FCA. Other exclusions can include cases already decided by the Financial Ombudsman Service or a court, compensation already accepted, some business or high-value loans, and arrangements where commission was below the FCA’s stated fairness thresholds. Confirm your own position with the lender rather than assuming an exclusion or entitlement.
Commission arrangements covered by the proposed scheme
The FCA says the scheme may cover undisclosed discretionary commission arrangements, high-commission arrangements and certain contractual ties. For this scheme, it defines “high commission” as commission of at least 39% of the total cost of credit and 10% of the loan. Those are scheme definitions, not a promise that an agreement meeting a percentage will be paid automatically.
The FCA estimated that 37% of agreements made at the time—about 12.1 million agreements—in its 2026 estimate could be affected. A separate 2025 consultation statement estimated 14.2 million agreements, or 44% of all agreements made since 2007, might be unfair because of inadequate disclosure. The second figure is a consultation estimate, not a count of approved claims or guaranteed payouts; the estimates use different dates and methodologies and should not be combined.
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Gather the documents before you complain
Make a single folder, digital or paper, and keep the original files unedited. The following items let the lender and, if necessary, the Ombudsman reconstruct what happened.
- The signed finance agreement, including every schedule and the terms and conditions.
- The settlement statement or other document showing how the agreement was paid off, transferred or ended.
- Pre-contract information, such as the European Standard Information or equivalent quotation, payment schedule, interest rate and total cost of credit.
- The motorcycle invoice, order form, deposit receipt and any separate warranty, service-plan or insurance paperwork.
- Dealer or broker adverts, brochures, screenshots, price boards and written quotations.
- Emails, text messages, letters and call notes. Record the date, the person spoken to and what was said while your memory is fresh.
- Evidence relevant to affordability, such as the income and expenditure information requested at the time, declined alternatives, or later arrears and hardship correspondence.
- Documents about faults, repairs, servicing, MOT history, collection or repossession if the dispute also involves the motorcycle or continuing the agreement.
The Ombudsman says it can consider adverts, invoices, brochures, manuals, service and MOT history, emails, texts and other correspondence. Do not destroy a document merely because it appears unhelpful; context can show what you were told and what you reasonably understood.
Extract the key facts from your agreement
Write the following details in a short fact sheet. If a document does not state an item, mark it “not stated” and ask the lender to confirm it.
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| Item | Where to look | Why it matters |
|---|---|---|
| Finance type | Agreement heading and terms | Hire purchase, PCP and conditional sale are treated differently from a personal contract hire lease. |
| Lender | Creditor details, payment statements | The lender is normally the firm that must investigate a regulated-finance complaint. |
| Dealer or broker | Invoice, application and agreement | Identify who selected or introduced the finance and who made sales statements. |
| Agreement start date | Front page or first payment schedule | Lets you compare the date with the FCA’s 6 April 2007–1 November 2024 period. |
| Amount financed | Financial summary | Needed to identify the loan and assess any commission disclosure or affordability issue. |
| Interest rate and total cost of credit | Pre-contract information and agreement | Allows you to compare the promised rate with the contractual cost. |
| Commission disclosure | Broker disclosure, agreement or lender response | Shows whether commission, its existence or its effect on the rate was explained. |
Ask the lender, in factual language, whether commission was paid to the dealer or broker; what type of arrangement applied; whether the dealer could alter the interest rate; whether a contractual tie existed; and how any commission affected the cost. State clearly that the request is also a formal complaint if you allege that the arrangement caused you harm.
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Create a dated chronology rather than relying on a general recollection. Start with the advertisement or first quotation, then record the affordability discussion, any promise about the rate or monthly payment, the signing appointment, delivery, later faults or charges and every subsequent contact.
For each event, use four columns: date, person or document, what was said or shown and proof. Quote important wording accurately. For example, “the rate is fixed and cannot be changed” is materially different from “this is the best rate we can currently find.” Explain why you relied on the statement and what you would have done if the information had been accurate—such as choosing a different lender, negotiating the price, paying cash or not buying.
The Ombudsman’s approach to a misleading-sale complaint is evidence-based. It considers what you and the dealer or broker say, the information supplied before purchase, the finance agreement and pre-contract information, and later correspondence. If it finds a misleading statement or inducement, it considers the decision you would probably have made and the resulting financial impact.
Common indicators of a mis-sold motorcycle loan
Undisclosed or rate-linked commission
A dealer may have received commission without explaining its existence, amount or effect on the interest rate. A discretionary arrangement could allow the dealer to influence the rate and therefore its own payment. Ask the lender to identify the arrangement rather than asserting a percentage you cannot evidence.
Misleading price, rate or payment claims
Examples include advertising a monthly payment that omitted a required deposit or final balloon payment, promising a rate that was not available on your application, or describing optional products as compulsory. Preserve the original advert or message and show the difference between the representation and the signed figures.
Unaffordable lending
Finance may have been unsuitable if the lender failed to assess whether you could meet repayments and essential living costs at the time. Later financial difficulty alone does not prove an unaffordable decision, but arrears, repeated refinances or hardship soon after the sale can support a factual account. Explain the information you provided and what the lender did with it.
Unfair treatment during financial difficulty
The Ombudsman can consider whether a customer was treated unfairly after falling behind. Include requests for help, pauses, payment plans, repossession notices and the lender’s responses. Keep this issue distinct from a commission complaint so each alleged harm can be investigated.
Unfair or unexplained charges
List administration, early-settlement, default, collection or other charges and identify where they appear in the contract. A charge can be challenged if it was not properly brought to your attention or was applied contrary to the agreement. Do not assume every charge is unlawful; explain the specific disclosure or application problem.
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Motorcycle condition and description
A bike that was mis-described, supplied with serious undisclosed faults or accompanied by inaccurate mileage evidence can create a separate complaint about the sale or finance relationship. Include the advert, invoice, inspection, repair invoices, service and MOT history and dates when defects appeared. A quality dispute is not automatically a commission claim, so describe each issue separately.
How to complain to the lender
- Use the lender’s current complaint channel. Check its website, agreement or statements for the complaint email, web form or postal address. Address the complaint to the lender named in the agreement, even if the dealer arranged the finance.
- Identify the agreement. Give your name, address used at the time, agreement or account number, motorcycle registration if relevant, dealer or broker, agreement date and finance type.
- Set out each allegation. Say whether you allege undisclosed commission, a discretionary or high-commission arrangement, a contractual tie, a misleading statement, unaffordable lending, unfair treatment or an unexplained charge. Link each allegation to a document or event in your chronology.
- Describe the impact. State the additional interest or charge you believe resulted, the financial loss, or the decision you would have made with accurate information. Do not invent a payout figure.
- Request a specific investigation and remedy. Ask the lender to disclose the commission arrangement and explain its rate-setting process, assess the sale and affordability evidence, correct or refund improperly charged amounts and provide any remedy it considers due.
- Attach copies, not irreplaceable originals. Number the attachments and refer to them in the text. Keep a complete copy of what you sent.
The FCA identifies complaining to the lender as the best practical step for people with concerns. A clear, evidence-led complaint is more useful than a generic form that alleges every possible problem without dates or documents.
Keep proof and track the response
Save the submitted form or email, attachments, an automated acknowledgement, postal proof and every later response. Maintain a simple log with the date, sender, method and outcome. If the lender asks for information, answer the question directly and retain your reply.
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Read the lender’s final response or redress determination carefully. It should explain the decision, any calculation and the date by which you must refer the matter to the Financial Ombudsman Service. Scheme-related deadlines have changed during litigation, so use the date in your own letter rather than an old web article or a deadline quoted by someone else.
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Escalate to the Financial Ombudsman Service when eligible
The Financial Ombudsman Service says, “Our service is free and easy to use.” Normally you must complain to the firm first. If the firm has not sent a final response within eight weeks, or you are unhappy with its response, you can usually refer the complaint. Include the lender’s final response, your original complaint, the agreement, chronology and the evidence supporting each point.
Follow the referral deadline printed in the lender’s final or redress response. FCA scheme-specific timing has been affected by legal proceedings, so the letter’s date controls your next step. The Ombudsman can investigate ordinary mis-selling, affordability, unfair-treatment, commission-disclosure and charge complaints; it is not limited to the proposed compensation scheme.
What remedies may be available
There is no guaranteed personal payout. For an ordinary mis-sale finding, the Ombudsman may award compensation for proven loss, write off charges that were not properly brought to your attention, or end the agreement and take back the vehicle where continuing would be unreasonable. The remedy depends on the evidence, the financial impact and what would probably have happened with accurate information.
Keep any calculation tied to your records: payments, interest, deposit, settlement amount, fees and consequential loss. Avoid presenting the FCA’s population estimates as an estimate of your own award.
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The FCA consumer page updated 13 October 2026 says the compensation scheme has been legally challenged. The challenge is scheduled for 16–26 February 2027. Lenders do not currently need to calculate or pay scheme compensation, and payments are expected in 2027 only if the scheme is upheld and is not successfully appealed. Those conditions make timing uncertain.
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For complaints already made, the FCA gives these practical contact dates:
| Agreement began | Complaint made by | Expected lender contact |
|---|---|---|
| On or after 1 April 2014 | 30 June 2026 | 18 November 2026 |
| Before 1 April 2014 | 31 August 2026 | 18 January 2027 |
These are FCA scheme communications dates, not a promise that a complaint will be accepted or paid. Recheck the FCA’s current consumer guidance and your lender’s letter before acting because court decisions and operational deadlines can change.
Should you pay a claims-management company or solicitor?
You can complain to the lender and, if necessary, the Ombudsman for free. The FCA says: “You can complain now for free without using one, and you don’t need to use a CMC to find out if you’re eligible.” A representative may be useful if your case is unusually complex or you cannot manage correspondence, but paying one is not a requirement for eligibility.
The FCA warns that a claims-management company or law firm may charge up to 36% including VAT from compensation. Before signing, compare the following:
- Total fee, including VAT, and whether it is deducted from compensation or payable another way.
- FCA authorisation or the relevant legal regulator’s status.
- Exactly what work is included: document retrieval, drafting, lender contact, Ombudsman referral and responses to further questions.
- Cancellation rights, minimum fees and charges if the complaint fails.
- Who controls correspondence and whether you receive every document and decision.
- Whether the firm explains the evidence and legal basis for your allegations instead of promising a result.
Verify a firm on the FCA register, read the fee and cancellation terms, and do not give anyone your PINs or passwords. Be especially cautious of an upfront transfer described as an FCA payment request; the FCA does not require such a payment to investigate eligibility.
A practical self-complaint checklist
- Confirm the agreement date, lender, dealer or broker and finance type.
- Rule out obvious scope issues such as personal contract hire, a decided court or Ombudsman case, accepted compensation or a business/high-value arrangement.
- Collect the agreement, settlement statement, pre-contract information, invoice, adverts and correspondence.
- Record the interest rate, total cost of credit, amount financed, deposit and final payment.
- Ask the lender what commission was paid, what arrangement applied and whether the dealer could vary the rate.
- Build a dated chronology and identify the evidence for every allegation.
- Send a written complaint to the lender and keep proof of submission.
- Read the final or redress response and calendar its Ombudsman referral deadline.
- Refer to the free Ombudsman service if the lender rejects the complaint or misses the applicable response period.
- Monitor FCA updates rather than relying on a fixed promise about scheme payments.
When a complaint is unlikely to succeed on the available facts
A complaint is weaker when the agreement is outside the relevant period or is a clearly excluded product, the dealer’s statement cannot be identified, the contractual documents contradict the alleged promise and there is no evidence of reliance or loss, or the complaint simply says the motorcycle later became unaffordable without addressing the original affordability assessment. That does not prevent you from raising a genuine issue; it means you should explain the uncertainty and supply whatever contemporaneous evidence remains.
Keep commission, affordability, unfair-treatment, charge and motorcycle-condition allegations distinct. A lender or Ombudsman can reach different outcomes on each, and separating them prevents a valid issue from being obscured by an unsupported general claim.
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