Updated: 17 October 2025

Originally Published: 12 October 2024

The UK car finance market is going through a major clean-up. After the Financial Conduct Authority opened a national consultation into unfair lending practices [1], many drivers started taking a fresh look at old loans. That includes customers whose agreements were introduced in showrooms and later serviced by Barclays car finance teams. If your paperwork involved hidden commissions, unclear interest, or fees that were not well explained, you might be able to bring a Barclays finance claim for a fair review and possible redress.

This guide translates the latest developments into plain English. You will see what has changed in 2025, how to recognise mis-sold car finance Barclays issues, and the exact steps to submit a complaint safely and confidently. Outcomes are not guaranteed. Typical payments for eligible agreements across the market are expected to be around £700 per agreement, although your figure could be higher or lower depending on your circumstances. You can complain directly to the lender for free, use the Financial Ombudsman Service [2], or choose regulated support from a finance claims expert.

Why Barclays Finance agreements are under review

For years, dealers arranged loans on the forecourt and passed them to lenders to administer. That model made it easy to take out Personal Contract Purchase (PCP) or Hire Purchase (HP), often through Barclays. The convenience came with a catch. Many arrangements used commission structures that were not obvious to customers at the point of sale.

The most problematic structure was a discretionary commission arrangement. In practice, a broker could set or influence your interest rate. A higher rate often meant a higher payment to the broker. Most customers were never told that this incentive existed, which meant they could not make an informed choice. The FCA banned that model for new business in 2021. The consultation now looks at historic loans to decide how to put things right.

What changed in 2025

Supreme Court clarity. In August 2025 the Supreme Court confirmed that commission is not automatically unlawful [3]. However, if it was hidden or excessive, it can still create an unfair relationship under the Consumer Credit Act. That keeps the door open for complaints where disclosure was weak or where costs were affected.

FCA consultation. In October 2025 the FCA opened a six-week consultation covering car finance agreements entered between 6 April 2007 and 1 November 2024. The consultation sets out how a national redress scheme could work and how compensation would be calculated at scale.

Complaint handling. Commission-related final responses are paused until 4 December 2025 [4]. The regulator is also consulting on a proposal requiring firms to provide final responses by 31 July 2026, so that decisions are consistent once rules are finalised.

All of this applies across the market and includes loans arranged through dealerships that later sat with Barclays for servicing.

The FCA’s three categories of unfair agreements

Your Barclays car finance claim may fit one or more of these categories. These definitions come directly from the consultation.

Discretionary commission arrangements

A broker or dealer could vary your interest rate and earn more if the rate went up. Customers were usually not told how this incentive worked. These arrangements were banned for new agreements from 2021.

High-commission structures

Even where the interest rate was not adjusted, the broker could receive very large payments. The FCA highlights cases where commission was 35 percent or more of the total cost of credit and 10 percent or more of the loan amount. These levels risk distorting sales.

Exclusive or restricted lender access

Some brokers mainly offered credit from a single lender. If you were led to believe there was only one option, or alternatives were not explained, the arrangement may be unfair.

If any of these apply to your loan, you may be eligible for Barclays car finance compensation once the rules are finalised.

Why customers are filing complaints

People bring Barclays car finance complaints for a handful of familiar reasons.

• The APR felt high for their credit profile and no clear reason was given.
• Commission was not explained in a way that made sense.
• Balloon payments on PCP were not discussed in plain language at the start.
• Admin or option-to-purchase fees appeared without proper explanation.
• They were shown only one lender and not told they could compare other offers.

If those issues sound familiar, a Barclays car finance reclaim action is worth considering. It is also common to see Barclays PCP claims where customers were comfortable with monthly payments but surprised by the final lump sum or by how interest was calculated across the term.

Who may qualify for a refund

You could be eligible for Barclays car finance compensation if:

• Your agreement involved undisclosed commission or a structure that rewarded higher rates.
• The salesperson did not explain how your interest rate was set.
• Key PCP features such as the balloon payment and mileage terms were not described clearly.
• Your agreement falls between 6 April 2007 and 1 November 2024, or was still active after April 2007.

Refunds typically focus on overpaid interest that flowed from the commission model. In many cases, redress can also include an interest uplift calculated at the Bank of England base rate plus one percentage point. When appropriate, unfair credit markers can be corrected.

Results vary, and there is no guaranteed outcome. The market-wide estimate of around £700 per eligible agreement [5] is not a promise for any specific Barclays partner finance claim.

How compensation is likely to be calculated

The consultation proposes a hybrid approach that looks at both the commission and the interest impact.

• Typical outcomes. Around £700 per eligible agreement is the current market estimate across all lenders. Your figure can be higher or lower.
• Serious cases. Where high-commission structures are identified, proposals include returning the commission with interest.
• Additional elements. A Barclays Partner Finance refund may also include fair adjustments for fees that were not properly explained and interest on any redress paid.

Barclays has publicly reserved funds for potential redress, which signals an expectation that valid cases exist and will need consistent outcomes once the FCA publishes final rules.

Step by step: how to bring a Barclays finance claim

You can proceed on your own, use the Ombudsman, or appoint a professional or finance claims expert. The core steps are the same.

Step 1. Collect your documents

Find your agreement, pre-contract information, showroom quotes, and emails. If you cannot locate them, ask the lender for copies. Your request should include the agreement number if you have it.

Step 2. Sense-check the numbers

Write down the APR, the monthly payment, the total repayable, and any fees. If it is a PCP, note the balloon amount, mileage limit, and excess mileage rate. Compare this with what you remember being told.

Step 3. Put your complaint in writing

Explain the issue in plain English. For example:

• You were not told about a model that rewarded higher interest.
• The APR felt high for your credit standing and no reason was given.
• Key PCP costs were not explained in a way you could understand.

Ask for a fair review in line with FCA policy and request a Barclays Partner Finance refund where appropriate. If you have already paid the loan, ask for money back. If the loan is still active, ask for adjustments that reflect a fair rate.

Step 4. Submit the complaint

Send your letter by email, post, or via the lender’s web form. Keep copies of everything you send and note the date. This creates a clear timeline.

Step 5. Await the response

Normally a firm has eight weeks to respond. For now, commission-related final responses are paused until 4 December 2025. Submitting today ensures your complaint is logged and will be assessed once the pause ends.

Step 6. Escalate if needed

If you disagree with the outcome, you can refer the case to the Financial Ombudsman Service within six months of the final response. This is free and independent. Customers may choose this route for a Barclays car loan commissions appeal if they believe the first decision did not reflect the evidence.

Writing a stronger complaint

A clear letter helps the reviewer understand your position quickly.

• Agreement details. Include product type, start date, term, APR, and any fees you query.
• What happened. Describe the conversation at the point of sale and anything you were not told.
• Why it matters. Explain how the issue changed your cost or your decision.
• What you want. Ask for a fair review, a refund of overpaid interest, the return of undisclosed commission, interest on redress, and correction of any unfair markers.

If your contract was a PCP set up through a dealership, you can refer to it as a Barclays Partner Finance car finance claim in your subject line. If the focus is the final lump sum, you can note that it is a Barclays Partner Finance PCP claim.

Evidence checklist

• Finance agreement and pre-contract credit information.
• Showroom quotes or finance illustrations.
• Emails and letters with the dealer or lender.
• Payment statements and settlement figures.
• Notes of calls, including dates and names.

You do not need perfect records. If documents are missing, ask for copies and proceed with what you have.

Working with professionals

Some people prefer help from regulated representatives. A finance claims expert or solicitor can assemble a file, analyse rate movements, and manage correspondence. If you appoint a claims management company, check that it is authorised and regulated by the FCA for claims management activity. Read the client agreement carefully so you understand fees, which are often charged on a No Win, No Fee basis in the range of 18 to 36 percent including VAT. Representation does not increase your eligibility. You can complain for free on your own.

If your case is unusual or large in value, professional advice can be useful. That is especially true where you are navigating car finance claims Barclays wide processes alongside a time-sensitive situation such as a looming limitation date.

What to expect next

• October 2025: FCA consultation launched
• 4 December 2025: Pause on commission complaints ends
• Early 2026: Final FCA rules expected
• 31 July 2026: Proposed deadline for firms to issue final responses
• Late 2026: Anticipated start of compensation payments

Filing your Barclays Partner Finance claim [6] now simply means your case is in the queue. The consultation is designed to make outcomes consistent across the sector.

Frequently Asked Questions

Can I start a complaint now?

Yes. You can submit a complaint today. Commission-related final responses are paused until 4 December 2025, but logging your case now means it will be reviewed when the pause lifts.

Does this cover PCP and HP?

Yes. PCP and HP are in scope for the consultation. If you used a PCP through a dealer, you can describe your case as a Barclays PCP claims matter when you write.

How much could I receive?

The market-wide estimate is around £700 per eligible agreement. Actual redress depends on the loan, the commission structure, and your circumstances.

Can I complain if the loan has ended?

Yes. Finished agreements can still qualify if they fall within the date range.

Do I need a representative?

No. You can complain for free directly and use the Ombudsman for free. Some people choose help from professionals to save time or fill gaps in paperwork.

Is there a difference between a refund and compensation?

People often use the terms together. A Barclays Partner Finance refund usually means returning overpaid interest and undisclosed commission. Barclays car finance compensation can include that refund plus statutory interest, and in some cases credit file corrections.

Compliance and clarity

• The £700 figure is an estimate across the market, not a promise for a single case.
• You can complain for free directly to the lender or through the Financial Ombudsman Service.
• If you appoint a firm, make sure it is regulated and that the fee model is clear.
• The consultation timetable is public and designed for consistent decisions.

Final thoughts

Hidden incentives and unclear terms left many drivers paying more than they should. The FCA’s consultation is the path to a consistent fix. If your agreement involved a discretionary commission model, a high-commission structure, or restricted access to alternatives, you have a credible reason to ask for a review.

Start with a calm check of your documents. Write a clear letter about what happened and why it mattered. If you need support, regulated professionals can help you present the case properly. Whether you proceed alone or with assistance, a well-prepared Barclays car finance claim gives the decision-maker what they need to assess your position fairly.

If your PCP was arranged in a showroom and later administered by the bank, you can reference it as a Barclays Partner Finance car finance claim in your subject line. If the focus is on PCP features, describe it as a Barclays Partner Finance PCP claim. If your first attempt is declined, a measured Barclays car finance reclaim through the Ombudsman is the next logical step.

The goal is simple. A fair outcome that reflects what you actually paid and what you should have paid under a transparent agreement.

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References:

1. Financial Conduct Authority opened a national consultation into unfair lending practices - https://www.fca.org.uk/news/statements/fca-consults-motor-finance-compensation-scheme
2. Financial Ombudsman Service - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/credit-borrowing-money/car-finance/complaints-about-commission
3. In August 2025 the Supreme Court confirmed that commission is not automatically unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
4. Commission-related final responses are paused until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. market-wide estimate of around £700 per eligible agreement - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme
6. Filing your Barclays Partner Finance claim - https://forms-mtg.barclays.co.uk/forms/covid-phase?execution=e1s1