Clydesdale Finance 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 Clydesdale Finance between April 2007 and November 2024, you may be entitled to compensation under the FCA motor finance redress scheme confirmed on 30 March 2026 (PS26/3). Clydesdale Finance — not to be confused with Clydesdale Bank or Clydesdale Financial Services (Barclays) — was an independent motor finance lender that operated through the dealer network before ceasing new lending. This guide covers eligibility, compensation calculation and how to submit your complaint.
Who Is Clydesdale Finance?
Clydesdale Finance Ltd was an FCA-authorised motor finance provider specialising in PCP and HP agreements through franchised and independent dealerships. It operated as a standalone specialist lender rather than as the captive finance arm of a vehicle manufacturer. Important note: Clydesdale Finance is a separate entity from Clydesdale Financial Services Ltd (which is the Barclays car finance subsidiary) and from Clydesdale Bank. If your agreement names Clydesdale Finance specifically — not Barclays Partner Finance or Clydesdale Bank — this is the correct page.
Barclays Car Finance Claims (Clydesdale Financial Services)
Is Clydesdale Finance Covered by the FCA Scheme?
Yes, provided the agreement was FCA-regulated and arranged between 6 April 2007 and 1 November 2024. The scheme covers all FCA-authorised lenders operating in the UK motor finance market during this period. The complaint deadline is 31 August 2027.
Three Grounds for a Clydesdale Finance Claim
1. Discretionary Commission Arrangements (DCAs)
Clydesdale Finance operated through dealer networks where DCAs were common. A DCA allowed dealers to set your interest rate within a range defined by the lender — the higher the rate, the more commission they earned. Where this was not disclosed to you at the point of sale, you are eligible for compensation under the scheme. DCAs were banned on 28 January 2021.
2. Unfairly High Fixed Commission
If the fixed commission earned by the dealer was at least 39% of the total cost of credit and 10% of the loan amount, this is considered unfairly high under PS26/3 regardless of whether a DCA was in place. This applies to agreements throughout the eligible period.
3. Failure to Disclose Commission
Even where no DCA existed, if Clydesdale Finance or the dealer failed to disclose that a commission was being paid, and that commission influenced the terms of your agreement, this supports a complaint under the scheme.
How Much Could You Receive?
The confirmed national average payout is £829 per eligible agreement. Your amount is calculated using the hybrid remedy — averaging your estimated interest overpayment (17% APR reduction for post-April 2014 agreements, 21% for pre-April 2014 agreements) and the commission paid, plus compensatory interest at Bank of England base rate plus 1% per year.
Scheme Timetable (Original Dates, Now Suspended)
Post-April 2014 agreements: Complain before 30 June 2026 → response 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
Final complaint deadline: 31 August 2027
How to Complain to Clydesdale Finance
Contact Clydesdale Finance using the address or contact details shown on your original finance agreement. Submit your complaint in writing referencing the FCA motor finance redress scheme (PS26/3). Include your full name, date of birth, address at the time of the agreement, vehicle registration if available, and a statement that you are complaining about undisclosed commission arrangements.
Related Lender Pages
Close Brothers Car Finance Claims
Advantage Finance Car Finance Claims
Frequently Asked Questions
Is Clydesdale Finance the same as Clydesdale Bank?
No. Clydesdale Finance Ltd is a separate specialist motor finance lender. Clydesdale Bank is a retail bank. They are entirely separate entities. If your finance agreement names Clydesdale Finance as the lender, this page applies.
Clydesdale Finance no longer appears to be trading. Can I still claim?
Yes. The FCA scheme applies to all eligible agreements regardless of whether the lender is still actively trading. If the company has been wound up or acquired, the scheme administrator or successor entity is responsible for handling complaints.
I sold my car before finishing the agreement. Can I still claim?
Yes. The claim relates to the commission arrangement at the start of the agreement, not whether you completed it or still own the vehicle.
Claiming After Selling Your Car
You will be redirected to our partner’s website to complete your claim.
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.
