Northridge Finance Claims: Could You Be Owed a Refund for Mis-Sold Car Finance?

As a subsidiary of NIIB Group Ltd, Northridge Finance provides sought-after car finance solutions across the United Kingdom. Vehicle acquisition is possible through structured payment plans which include a choice between financing options such as Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements.

Recent investigations exposed multiple problems with mis-sold car finance agreements through undisclosed hidden fees, increased interest rates and non-disclosed discretionary commissions. The Financial Conduct Authority's investigation into these financial practices has prompted consumers to consider if they were improperly charged and if they can pursue a Northridge Finance claim for compensation.

Why Are Northridge Finance Customers Filing Claims?

Consumers who entered into car finance contracts with Northridge Finance have begun to investigate if their contracts were improperly sold to them. Customers file claims because of several key reasons.

• Mis-sold PCP and HP agreements – Customers were not given full transparency about the terms of their agreements, leading to financial disadvantages.
• Hidden fees and inflated interest rates – A selection of financial agreements included unannounced additional fees as well as increased interest rates that led to greater costs for borrowers.
• Undisclosed discretionary commissions – Dealerships and brokers may obtain undisclosed commissions while failing to inform customers which creates a conflict of interest.
• Northridge Finance’s involvement in the UK car finance scandal – As regulatory investigations continue, affected customers are encouraged to assess whether they are entitled to a Northridge Finance compensation claim.

How Do I Know If My Northridge Finance Agreement Was Mis-Sold?

When you suspect car finance mis-selling, examine these signs.

• Were you informed about commission payments? When dealers and finance providers do not disclose their commission structures, it suggests potential mis-selling of finance agreements. Dealer commission payments generate conflicts between dealer incentives and customer needs that result in promoting expensive financing options. Customers needed to be informed about any commission arrangements that would help them make better decisions. If this information was withheld, you may have grounds for a Northridge Finance car finance claim.
• Were the terms of your agreement fully explained? The lender or dealer must provide a clear breakdown of repayment terms, interest rates and additional fees to the customer before they sign a finance agreement. Failing to disclose essential information or presenting false details might have prevented you from fully grasping your financial commitment. Vague contract terms, alongside deceptive explanations, create financial problems later. If the terms of the contract are not clear, it might prove that Northridge Finance mis-sold car finance because you were not properly informed about your financial deal.
• Did your payments go up unexpectedly each month? A few consumers were issued larger monthly payment amounts unexpectedly as a result of variable interest rates and hidden charges. A sudden increase in your payments without a legitimate explanation or warning is often a reflection of undisclosed contract fees. All the fees must be disclosed by lenders before implementing any agreement and any modifications that depart from the initial terms. If you were not made aware of potential payment changes, you may have a valid reason to apply for compensation under a Northridge car finance claim.
• Did you feel pressured into taking the finance deal? High-pressure sales tactics are a common cause of mis-sold car finance agreements. Being pushed to sign a contract without sufficient time for review or examining other choices may indicate you were deceived. Salespeople possibly misled customers by claiming deals were limited-time offers and that alternative financing options were unavailable. When you accept a finance agreement under pressure without understanding its details, you might have experienced a violation of your rights.
• Were you aware of any alternative finance options? Consumers may not have received information about other finance solutions that would have been better suited to their needs. When the dealer presented only one financing agreement instead of multiple options, they might have favored their own financial gain instead of your interests. Analysing various financial products ensures borrowers get fair deals while failing to disclose this information represents mis-selling. You can seek compensation through NIIB Finance if you were denied the chance to consider different options.

Additionally, if your finance contract included a discretionary commission arrangement—where the lender allowed the dealer to set interest rates for a higher commission—then you might be eligible for a Northridge Finance car finance claim under FCA guidelines.

How Much Compensation Can You Get from a Northridge Finance Claim?

Your compensation eligibility depends on multiple aspects, such as how much financial loss resulted from mis-selling practices. Generally, compensation calculations take into account:

• The overpayment due to inflated interest rates. A higher-than-necessary interest rate from a discretionary commission arrangement could make you eligible for a refund. The refund amount will equal the difference between the fair interest rate and what you paid. Compensation includes interest on the excess amount paid by you. The objective seeks to restore customers to their financial status if the mis-selling had not taken place. Customers holding agreements with NIIB loans could qualify for compensation.
• The refund of undisclosed commissions. Car finance agreements often contained dealer commissions which remained hidden from customers. Customers who paid undisclosed commissions through their finance payments might qualify for financial reimbursement. The FCA advises that customers need to receive information about commissions that affect lenders' decisions. If this was not the case, you could receive a full refund of the commission amount.
• Any additional charges or fees imposed unfairly. Customers received fees that their agreements did not adequately detail. The undisclosed fees that customers faced consisted of early repayment penalties along with administrative charges and other hidden costs that raised the total loan amount unfairly. You could get a refund when the fees were not justified or fully revealed to you. The rules of consumer finance demand transparency and fairness for all applied charges.

Case Study: Successful Northridge Finance Claim

A recent claimant financed a vehicle through Northridge car finance but later discovered undisclosed commissions led to higher monthly payments. After filing a claim, the customer was refunded thousands of pounds in interest overpayments and commission charges (Source: Financial Ombudsman Service).

How Can You File a Northridge Finance Claim?

If you believe you were mis-sold a finance agreement, follow these steps:

1. Review your finance agreement – Look for any undisclosed fees or commission arrangements.
2. Gather supporting documents – This includes finance contracts, emails, and communication with the dealer.
3. Submit a formal complaint to Northridge Finance – Request a refund for any mis-sold elements.
4. Escalate to the Financial Ombudsman Service (FOS) if necessary – If Northridge Finance rejects your claim, you can take the matter to the FOS for further review.
5. Seek legal advice – If your claim is complex or you need assistance, consulting a claims specialist can improve your chances of success.

Is Northridge Finance Part of the PCP Claim Investigation?

The PCP car finance scandal has impacted numerous lenders, including Northridge Finance. If you took out a PCP agreement, particularly before the FCA crackdown on discretionary commissions entered into between April 2007 and January 28, 2021, you may be entitled to claim back from NIIB for overpaid interest or hidden fees. The deadline for filing such complaints has been extended to December 4, 2025. Seek the help of a legal professional for a complex Northridge Finance PCP claim.

Frequently Asked Questions 

Is it possible to claim compensation after paying off my Northridge Finance agreement?

​If you entered into a PCP or HP agreement with Northridge Finance between April 2007 and January 28, 2021, you may be eligible to claim compensation for potential mis-selling. Despite having paid off your loan completely, you retain the right to seek compensation for a mis-sold agreement.

What is the duration required to complete the claims process at Northridge Finance?

Resolution periods differ for each case but most claims get resolved during a span of several months. An escalated claim to the Financial Ombudsman Service (FOS) could result in a longer resolution time.

Should I hire a lawyer when submitting a claim through Northridge Finance?

You can complete the claim process independently, but engaging a solicitor or claims management firm helps with difficult cases to increase the likelihood of success.

What happens if my claim is rejected?

The Financial Ombudsman Service can review your claim independently if Northridge Finance turns it down. Legal action may also be an option.

What is the official deadline to submit a claim?

You have six years from your agreement signing date or three years from discovering the mis-selling to initiate a claim.

What Should Northridge Finance Customers Do Next?

If you took out a car finance agreement with Northridge Finance or NIIB car finance, now is the time to review your contract. Identify indicators of mis-sold car finance while you collect essential paperwork and submit your claim before expiration dates. A specialist consultation will establish your compensation eligibility and provide process guidance.

Many customers have already received refunds, so if you suspect you were mis-sold your finance agreement, taking action now could help you recover what you are owed.