Barclays Partner Finance to make early settlement offers to some motor finance customers

• The Financial Conduct Authority’s (FCA) motor finance redress scheme is subject to ongoing legal challenges, with parts of the scheme currently suspended
• Some Barclays Partner Finance customers whose motor finance commission complaints were acknowledged on or before 1 October 2026 will be offered an early full and final settlement
• Not all customers whose complaints were acknowledged on or before 1 October 2026 will receive an early settlement offer
• Early settlement offers will be calculated using the FCA’s motor finance redress scheme methodology, reflecting the individual circumstances of each loan agreement
• Customers, or their authorised representatives, will be contacted directly in the coming weeks
• Acceptance is optional, and customers will receive clear information on how their offer has been calculated and what accepting it would mean

With the FCA’s motor finance redress scheme currently partially suspended, Barclays Partner Finance has today confirmed it will make early settlement offers to some customers who have previously complained about the commission on their motor finance agreement, and whose complaints were acknowledged on or before 1 October 2026¹, giving them the option of receiving redress sooner.

The Financial Conduct Authority’s (FCA) motor finance redress scheme is subject to ongoing legal challenges, with parts of the scheme currently suspended. These early settlement offers will provide an alternative to waiting for the legal process and any subsequent FCA action to conclude.

The offers will be calculated using the FCA’s motor finance redress scheme methodology, reflecting the individual circumstances of each agreement. The FCA has also confirmed that it supports firms making settlement offers in line with its scheme.

Customers receiving an offer will be told why it is being made, how it has been calculated and what accepting it would mean. They will have a month to accept or reject the offer, and can seek independent advice. This timing is in line with FCA expectations and allows accepted offers to be processed and paid before the Upper Tribunal hearing about the motor finance redress scheme in February.

Acceptance is optional. Customers who accept will receive a full and final settlement of commission-related matters on the relevant agreement, but cannot subsequently seek additional compensation or pursue further complaints or legal claims relating to the commission on that agreement. Barclays Partner Finance will not ask them to repay any of the settlement if the final outcome would otherwise entitle them to less.

Customers who decline or take no action will receive further information following the conclusion of the legal challenges and any subsequent FCA action. Depending on that outcome, they could be entitled to a larger offer, a smaller offer, or in some cases no offer.

Customers do not need to contact Barclays Partner Finance to check whether they will receive an offer. Those who have already complained but do not receive an early settlement offer will receive further information following the conclusion of the legal challenges and any subsequent FCA action.

A Barclays Partner Finance spokesperson said:

“We recognise that some customers have already faced a considerable wait for an outcome on their motor finance complaints. By making these early settlement offers, we are giving some customers the option of receiving redress sooner, rather than waiting for the legal challenges and any subsequent FCA action to conclude.

“Each offer will be calculated using the FCA’s redress scheme methodology. We will clearly explain how it has been calculated and what accepting a full and final settlement means, so customers can decide whether accepting the offer is right for them.”

- Ends –

Notes

¹For clarity: Not all customers whose complaints were acknowledged on or before 1 October 2026 will receive an early settlement offer.

• Barclays Partner Finance is a trading name of Clydesdale Financial Services Limited, a member of the Barclays Group
• Clydesdale Financial Services Limited / Barclays Partner Finance left the motor loan sector in 2019

For more information, please contact Oliver Palca at oliver.palca@barclaycard.co.uk

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