What Barclays has announced
On 3 November 2026, Barclays Partner Finance said it will make early settlement offers to some customers who complained about the commission on their car finance, where the complaint was acknowledged on or before 1 October 2026. Barclays says not everyone in that group will get an offer.
The offers will be worked out using the FCA's redress scheme method, based on each agreement. Barclays says it will contact customers, or their representatives, directly "in the coming weeks". The FCA lists Barclays Partner Finance as the first lender to tell it that it will make settlement offers.
Barclays Partner Finance is a trading name of Clydesdale Financial Services Limited. It stopped lending for cars in 2019, so this only affects older agreements.
Barclays has not said how many people will get an offer. MoneySavingExpert, which reported the news, believes it will be in the tens of thousands, and says that if you accept, the latest you should be paid is 31 January 2027.
Should you accept an early offer?
It is your choice, and you can get independent advice first. Things to weigh up:
- It is full and final. Once you accept, you cannot ask for more compensation, complain again or go to court about the commission on that agreement. You also cannot ask the Financial Ombudsman to review the offer.
- You keep it whatever happens. Barclays says it will not ask for any money back if the legal challenge means you would have been owed less.
- You might have got more by waiting. One of the groups challenging the scheme, Consumer Voice, wants higher payouts. MoneySavingExpert estimates any increase could be 20% or 30%, but there is no guarantee. Barclays says customers who wait could end up with a larger offer, a smaller one, or none.
- You have one month to decide. If you do nothing, you will hear more after the legal process ends.
Where the FCA scheme stands
The FCA's scheme covers car, van and motorbike finance taken out between 6 April 2007 and 1 November 2024, where the lender did not properly tell customers about commission arrangements with the broker. The FCA estimates around 12.1 million agreements are eligible, with an average payout of around £830 per agreement.
Parts of the scheme were suspended on 2 July 2026 after legal challenges. The Upper Tribunal is due to hear the challenge between 16 February and 3 March 2027. Until then, lenders do not have to calculate or pay compensation under the scheme. If the scheme is upheld and not appealed, the FCA expects payments to start in 2027.
What to do now
- Complain to your lender for free if you have not already. The FCA has a list of lenders with links to their complaint forms. You do not need a claims firm.
- Think twice about claims firms. The FCA warns that claims management companies and law firms can take up to 36% of your compensation, including VAT.
- Watch out for scams. Never share your PIN or passwords. A lender may ask for your account number and sort code to pay you, but you should never be asked for a fee.
- Find your lender from old bank statements, the dealer that sold you the car, or your credit file.
Comparing finance for your next car? Read our guide to PCP vs HP and try our PCP calculator.
Questions drivers ask
Who will get an early car finance offer from Barclays?
Some Barclays Partner Finance customers whose commission complaints were acknowledged on or before 1 October 2026. Not everyone in that group will get an offer, and Barclays will contact those who do.
If I accept an early offer, can I claim more later?
No. The offer is a full and final settlement of commission matters on that agreement, so you cannot claim more even if the FCA scheme changes after the legal challenge.
When will the FCA car finance scheme pay out?
Parts of the scheme are suspended while a legal challenge is heard from 16 February to 3 March 2027. If the scheme is upheld and not appealed, the FCA expects payments to begin in 2027.
Do I need a claims company to get car finance compensation?
No. You can complain to your lender for free. The FCA warns claims firms and law firms can charge up to 36% of your compensation, including VAT.
Sources
- Barclays: Barclays Partner Finance to make early settlement offers to some motor finance customers (3 November 2026)
- FCA: Car finance claims (updated 3 November 2026)
- FCA: Motor finance scheme partially suspended (2 July 2026)
- MoneySavingExpert: Barclays to offer early car finance mis-selling payouts (3 November 2026)
Facts checked against the sources above on 3 November 2026. Spotted something out of date? Tell us.
