Barclays to offer early payouts in car finance mis-selling claims

Business · First reported 2 Nov, 10:43 · Updated 13:25

Image: Wikimedia Commons · Fikkar Bonggi · CC BY-SA 4.0

Barclays Partner Finance plans to offer compensation to some customers who complained about car finance mis-selling, before the legal challenge to the FCA’s redress scheme is resolved. Customers can accept a settlement or wait for the scheme’s outcome.

Barclays Partner Finance will offer early settlements to some customers who complained; the bank says accepting is optional and customers will have a month to decide.
The offers use the FCA’s compensation model, and customers who accept cannot later pursue additional compensation or claims relating to commission on that agreement.
The FCA scheme is subject to legal challenges; the articles say the outcome could affect how much customers who decline an offer eventually receive and when payments begin. [221a044e-45ad-4ac7-a34e-decef0be06b4

Summary written by Lux AI from 2 articles

Key facts

Offer provider: Barclays Partner Finance, part of Barclays.
Offer recipients: Some customers who have already complained about car finance mis-selling.
Decision period: Customers will have a month to accept or reject an offer.
FCA scheme estimate: £9.1bn in the Guardian report; Sky News describes it as £9bn.
Possible scheme payment start: The FCA said payments could begin in 2027 if the scheme is upheld; legal proceedings could delay them until 2028 or later.