Barclays Car Finance Claim — PCP & HP Compensation 2026
Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.
If you financed a vehicle through Barclays Partner Finance between April 2007 and November 2024, your agreement may have included undisclosed commission arrangements that increased the interest you paid. Barclays has significantly increased its provisions for redress, reflecting the scale of its exposure. This guide explains eligibility, how compensation is calculated under the FCA scheme, and how to submit your complaint.
Who Is Barclays Partner Finance?
Barclays Partner Finance is a trading name of Clydesdale Financial Services Ltd (CFSL), a subsidiary of Barclays Bank PLC. It provided PCP and HP car finance through franchised and independent car dealerships across the UK. If your finance paperwork shows Barclays Partner Finance, Barclays Finance, or CFSL as the lender, you are dealing with the same entity. Barclays has set aside £325 million in provisions for motor finance redress — one of the larger lender provisions alongside Lloyds/Black Horse (£2 billion) and Close Brothers.
Is Barclays Partner Finance Covered by the FCA Scheme?
Yes. Barclays Partner Finance is an FCA-regulated lender and all eligible PCP and HP agreements arranged between 6 April 2007 and 1 November 2024 fall within the FCA motor finance redress scheme (PS26/3, confirmed 30 March 2026). Barclays has acknowledged the FCA’s policy statement and is reviewing its obligations. For a full explanation of the scheme: FCA Redress Scheme Explained
The Three Grounds for a Barclays Car Finance Claim
1. Discretionary Commission Arrangements (DCAs)
A DCA allowed the dealer to adjust your interest rate within a range set by Barclays. The higher they set it, the more commission they earned — without telling you. DCAs were banned on 28 January 2021. If your Barclays agreement included a DCA and it was not clearly disclosed, you are eligible for compensation. See: What Is a DCA?
2. Unfairly High Commission
Even without a DCA, if the fixed commission paid by Barclays to the dealer was at least 39% of the total cost of credit and 10% of the loan amount, the arrangement is considered unfairly high under the scheme. This applies across all Barclays Partner Finance agreements in the eligible period.
3. Contractual Ties — Where Barclays had exclusivity arrangements with certain dealers that were not properly disclosed to you, this may also trigger compensation under the scheme.
How Much Could You Receive?
The FCA’s confirmed national average payout is £829 per eligible agreement. Your specific amount depends on your loan size, interest rate, and when your agreement started. Compensation is calculated using the hybrid remedy — the average of your estimated interest overpayment (based on an APR adjustment of 17% for post-2014 agreements and 21% for pre-2014 agreements) and the commission paid by Barclays to your dealer, plus compensatory interest at Bank of England base rate plus 1% per year (minimum 3%).
Use our car finance claims calculator to estimate your payout. For older agreements see: How Far Back Can You Claim?
When Will You Be Paid?
- Post-April 2014 agreements: Complain before 30 June 2026 → Barclays must respond by 30 September 2026 → Payment by November 2026
- Pre-April 2014 agreements: Complain before 31 August 2026 → Decision by 30 November 2026 → Payment by January 2027
- If you do not complain: Barclays must contact you by end of December 2026 (post-2014) or February 2027 (pre-2014) if you are likely owed money
- Final complaint deadline: 31 August 2027
Customers who complain before the scheme opens receive decisions and payments significantly earlier than those who wait. Submitting a complaint to Barclays now takes minutes and costs nothing.
How to Complain to Barclays Partner Finance
Submit your complaint by email to bpfmotorcommissioncomplaints@barclays.com. Include your full name, date of birth, address at the time of the agreement, vehicle registration if known, and a statement that you are complaining about undisclosed commission arrangements under the FCA motor finance redress scheme (PS26/3).
If you no longer have your original paperwork: Claiming Without Paperwork. For all Barclays complaint contact details: Car Finance Lender Contact Details
Frequently Asked Questions
My agreement says Barclays Finance, not Barclays Partner Finance. Is it covered?
Yes. Barclays Finance and Barclays Partner Finance are both trading names of Clydesdale Financial Services Ltd (CFSL). All motor finance agreements under either name are within the FCA scheme.
I had a Barclays PCP claim previously rejected. Can I resubmit?
Yes. Many early rejections were assessed only against DCA criteria before the scheme expanded to cover high commission and contractual ties. Resubmitting under all three grounds is valid. See: Car Finance Claim Rejected
I had multiple Barclays agreements. Can I claim for all of them?
Yes. Each eligible agreement is assessed and compensated separately.
Does claiming affect my Barclays banking relationship?
No. The FCA has confirmed that submitting a complaint cannot be used against you by any lender and does not affect your credit score or banking facilities.
Think You May Have a Motor Finance Claim?
The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.
