Black Horse Finance: A Comprehensive Review

Black Horse Finance, a trading name of Lloyds Bank plc, is a prominent player in the UK car finance market.Established in 1962, it has a long history of providing a range of finance solutions to help customers acquire vehicles. This paper provides a detailed examination of Black Horse Finance, exploring its offerings, costs, customer experience, and reputation within the industry.

What Black Horse Offers Customers

Black Horse specializes in providing finance for both new and used cars, catering to a wide range of customers, including those with good and less-than-perfect credit histories. Their primary finance products include:

• Hire Purchase (HP): This is a popular option where you pay a deposit followed by fixed monthly payments over a set term (typically 12 to 60 months). At the end of the agreement, you own the vehicle outright.
• Personal Contract Purchase (PCP): PCP offers lower monthly payments compared to HP. At the end of the term, you have three options: pay a final "balloon payment" to own the car, return the car, or use any equity towards a new PCP agreement.
• Personal Loan: This option allows you to borrow a fixed amount to purchase a car from any dealer, providing more flexibility in choosing your vehicle.

Key Features and Benefits

• Wide Range of Vehicles: Black Horse finances cars from a vast network of dealerships across the UK, giving you extensive choice in selecting your vehicle.
• Competitive Rates: They offer competitive interest rates, which vary depending on factors like your credit score, loan amount, and term.
• Flexible Terms: They provide flexible repayment terms, allowing you to choose a plan that suits your budget and preferences.
• Online Account Management: Customers can manage their accounts, make payments, and track their agreements online through the Black Horse website.
• FCA Regulation: Black Horse is authorized and regulated by the Financial Conduct Authority (FCA), ensuring they adhere to consumer protection regulations.
• Additional Products: Besides car finance, Black Horse also offers other financial products, including personal loans, home improvement loans, and insurance.

Cost of Borrowing from Black Horse

The cost of borrowing from Black Horse depends on several factors, including:

• Interest Rates: The interest rate you're offered will depend on your credit score, the loan amount, and the loan term. Black Horse advertises representative APRs (Annual Percentage Rates), but the actual rate you receive will be personalized.
• Fees: Black Horse may charge fees for certain services, such as:
  • Arrangement fees: A fee for setting up the finance agreement.
  • Early settlement fees: A fee for paying off your loan early.
  • Late payment fees: A fee for missing a monthly payment.

It's crucial to carefully review the terms and conditions of any finance agreement with Black Horse to understand the specific interest rate and fees that apply to your situation.

Customer Experience and Reviews

Black Horse generally receives positive customer reviews, with many borrowers appreciating their competitive rates, helpful customer service, and easy-to-use online platform. However, like any financial institution, they also have some negative reviews, often related to specific customer service experiences or issues with vehicle returns.

Complaints and Redress

Black Horse has a dedicated complaints procedure for customers who are dissatisfied with their service.They also participate in the Financial Ombudsman Service (FOS) scheme, allowing customers to escalate complaints to an independent body if they are not resolved by Black Horse directly.

Black Horse and Discretionary Commission

Black Horse has been involved in the FCA's investigation into Discretionary Commission Arrangements (DCAs). If you believe you may have been affected by a DCA, you can contact Black Horse to discuss your options. They have information about the FCA's review and how to make a complaint on their website.

References

• Black Horse Website: https://www.blackhorse.co.uk/
• Black Horse Car Finance Page: [invalid URL removed]
• Black Horse Complaints Page: [invalid URL removed]
• FCA Register: https://register.fca.org.uk/ (Search for "Black Horse Limited")
• Financial Ombudsman Service: https://www.financial-ombudsman.org.uk/

Conclusion

Black Horse is a well-established and reputable car finance provider in the UK, offering a range of financing options to suit various needs and budgets. They are committed to providing competitive rates, flexible terms, and good customer service. However, like any financial product, it's essential to carefully consider the costs involved, read the terms and conditions, and compare offers from different lenders before making a decision.