Recent regulatory changes have placed older car‑finance agreements under closer scrutiny. The Financial Conduct Authority’s 2021 ban on discretionary commission arrangements, where brokers could raise your interest rate and pocket the difference, prompted a significant increase in complaints about older Hitachi Personal Contract Purchase (PCP) deals.
Hitachi Personal Finance, now trading as Novuna Personal Finance, issued tens of thousands of those agreements through franchised and independent dealerships, so it features in a growing number of test cases moving through the Financial Ombudsman Service and the courts. This article distils the most important findings so far, showing drivers why Hitachi contracts are under scrutiny and what that could mean for their wallets.
Key issues highlighted by recent Ombudsman cases
Two shortcomings appear again and again in Ombudsman decisions:
- Undisclosed broker commission – before January 2021, many Hitachi dealers could adjust the Annual Percentage Rate (APR) above the lender’s base rate. The mark‑up was pure commission and almost never disclosed, leaving borrowers unaware they were paying more so the salesperson could earn extra.
- Inadequate affordability assessments – several rulings have criticised dealers for approving credit without verifying income or living costs, contrary to the Consumer Credit Sourcebook. Decision DRN‑4518272 found that payslips were not requested and expenditure was guessed, yet the finance was approved.
Either failing can create an “unfair relationship” under section 140A of the Consumer Credit Act, a powerful legal lever because the court or Ombudsman can order interest to be refunded.
Regulator signals
The Financial Conduct Authority (FCA) and other oversight bodies have not sat on the sidelines. Their recent consultations and temporary rule changes provide borrowers with clear signposts, both on likely redress and on the timeframes within which lenders must respond.
| Milestone | Relevance to Hitachi cases | Source |
| FCA consultation on a sector‑wide redress scheme | Indicates that, if systemic malpractice is confirmed, the FCA may impose an industry scheme similar to PPI compensation. | FCA CP25/3 |
| Temporary extension of lender response deadlines to December 2025 | Allows Hitachi additional time to investigate historic complaints but keeps cases “live” and preserves consumers’ rights. | FCA Handbook update PS24/4 |
Typical redress when the borrower wins
When the Ombudsman or a court upholds a complaint, it applies Section 140B of the Consumer Credit Act to unwind the “unfair relationship”. In practice, that package of remedies usually includes:
- Refund of interest and fees – every penny of interest, option‑to‑purchase fees, and any linked add‑ons (such as GAP or service plans) tied to the unfair commission is repaid.
- Commission claw‑back – the undisclosed commission itself is returned to the borrower, not to the lender or dealer.
- 8 percent statutory interest – simple interest is added from the date each payment left the borrower’s account, compensating for loss of use of the money.
- Credit‑file correction – adverse markers directly related to the mis‑sold agreement (late‑payment, arrears, defaults) must be deleted.
How Hitachi compares with other lenders
Although Hitachi is not alone in facing allegations over undisclosed commission and lax affordability checks, the profile of its customer base and dealership network places it in a slightly different risk band.
Hitachi was the captive lender for several Japanese marques during the 2010s, meaning a high share of its PCP book involved zero‑deposit promotions where the dealer had full discretion to tweak APRs. By contrast, some rivals such as Close Brothers and Black Horse used tiered interest‑rate grids that limited, though did not eliminate, the incentive to inflate rates.
| Lender | Commission model before Jan 2021 | Typical APR range in upheld FOS cases* | Estimated PCP volume 2015‑2020 |
| Hitachi (Novuna) | Dealer‑set discretionary commission | 8 – 12 % | 250 k + |
| Black Horse Finance | Dealer‑set discretionary commission | 8 – 11 % | 400 k + |
| Close Brothers Motor Finance | Tiered rate grid with dealer margin | 8 – 13 % | 150 k + |
| MotoNovo Finance | Discretionary commission + add‑on incentives | 7 – 12 % | 200 k + |
Source estimates draw on Finance & Leasing Association market‑share tables and published FOS decision counts for 2019‑2024.
How PCP ClaimBack Can Help with Your Hitachi PCP Claim
Navigating PCP mis‑selling complaints can be complex, but you do not have to shoulder the burden alone. PCP ClaimBack specialises in Hitachi (Novuna) PCP claims, making the process clear, efficient and effective:
- Professional Claim Reviews – We will submit your claim and handle any queries on your behalf
- Comprehensive Claim Management – every piece of paperwork, evidence gathering and lender correspondence is handled on your behalf.
- Financial Ombudsman Support – if Hitachi rejects or delays the complaint, we will advise you if your claim needs to be escalated to the Financial Ombudsman.
- No‑Win‑No‑Fee Service – there is nothing to pay unless your claim succeeds.
“Many pre‑2021 Hitachi customers paid interest inflated solely to fund dealer commissions.” – Craig Gedey, PCP ClaimBack
Ready to check your eligibility? Start with our quick assessment on the hitachi pcp claims page or explore other lenders on our pcp claims homepage.
