Barclays offers early car finance payouts
Customers with complaints registered by October 1 will receive settlement offers before a legal ruling is expected next year.
By Charles Reed ·
Bucks County residents who were mis-sold car finance by Barclays may receive compensation sooner than expected. Barclays Partner Finance announced this week that it will issue early settlement offers to a specific group of motorists. These customers do not have to wait for the outcome of a pending legal challenge to receive their money.
The move comes after the Financial Conduct Authority determined in 2024 that many motor finance lenders failed to provide customers with important agreement information since 2007. The FCA launched a redress scheme this year designed to pay out an estimated £9 million to around 14 million people. However, a legal challenge has delayed the final judgment, with a decision not expected until 2027.
Barclays Partner Finance stated that customers whose complaints were acknowledged on or before October 1, 2026, will be eligible for an early offer. The firm said the calculations will use the FCA’s redress scheme methodology to reflect the individual circumstances of each agreement. Customers or their representatives will be contacted in the coming weeks regarding their specific offer.
A spokesperson for Barclays Partner Finance said, "We recognise that some customers have already faced a considerable wait for an outcome of 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."
The firm explained that the timing allows offers to be processed and paid before the legal challenge is heard. Customers will be given one month to accept or reject the offer. If a customer accepts, they cannot seek additional compensation in the future, but Barclays will not ask for repayment if the final outcome turns out to be lower. Those who reject or ignore the offer will receive information after the legal challenge concludes, though their final payout could be larger, smaller, or nonexistent.
The legal challenge is scheduled to be heard between February 16, 2027, and March 3, 2027. A result is expected in the months following that hearing.
More Business · Philadelphia news · Customer Complaints · Report a business · Got a Story?
