Key facts
- Barclays Partner Finance was reported to have started offering early settlements to customers who complained about car loan mis-selling.
- The offers were expected to reach tens of thousands of customers over a two-week period, according to the report.
- Barclays set aside £430 million for alleged motor finance mis-selling.
Barclays Partner Finance, part of Barclays, was reported to have begun offering early settlements to customers who complained about car loan mis-selling. The offers were expected to reach tens of thousands of customers over a two-week period and to match what would be due under the Financial Conduct Authority's compensation scheme. The FCA announced in March 2026 a £9.1 billion scheme covering loans between 2007 and 2024, but legal challenges led the regulator to partly suspend it and a hearing to decide its future was due in February 2027.
The FCA had expected payments averaging £829 to start in 2026. Until the legal challenge is resolved, lenders are not required to pay compensation. The regulator said it supported settlement offers provided they were no less than scheme amounts. Barclays set aside £430 million for motor finance mis-selling claims.
Customers accepting an offer would waive further claims and would likely be paid before Christmas, according to the report. Those rejecting offers could receive more, less, or nothing depending on the legal outcome. Barclays Partner Finance said it would not claw back compensation from those who accepted if the final outcome meant they would have received less.