Updated: 24 October 2025

Originally Published: 24 March 2025

The UK car finance market is being reshaped in real time. After years of questions about how interest rates were set in showrooms, the Financial Conduct Authority (FCA) has launched a national consultation to decide how redress should work for drivers who overpaid. If your agreement was arranged through a dealership that used Clydesdale Partner Finance, this is your moment to check whether everything was explained to you clearly and fairly.

Many customers used Clydesdale Bank car finance to spread the cost of a vehicle. Others took a Clydesdale Bank PCP agreement because the monthly payments looked manageable. Some customers financed a purchase with a Clydesdale Bank car loan arranged on the day they test drove the car. What felt like a straightforward decision at the time may look different now that the regulator has highlighted issues with commission models and disclosure.

You do not need to be a finance expert to get started. This guide keeps things human and practical. You will understand the latest 2025 updates, learn how to spot signs of mis-selling, and see how to bring a Clydesdale car finance complaint in a way that is safe, compliant and calm. We will also cover likely outcomes, timelines, and the simple steps that make a big difference when you write to the lender.

Refunds are never guaranteed. Typical outcomes across the market are often quoted at around £700 per eligible agreement, but your figure could be lower or higher. You can complain for free. You can use the Financial Ombudsman Service for free. If you prefer help, you can choose a regulated finance claims expert who charges only if you win.

Why are Clydesdale finance agreements being reviewed?

For years, UK dealers could set or influence the interest rate offered to a customer and be paid more if that rate went up. The arrangement was called a discretionary commission. It created a conflict of interest. The higher your rate, the more the broker could earn. Many customers were not told that this incentive existed.

This model affected customers who used Clydesdale Finance through the dealership network. It also appeared in agreements where the servicing later sat with related brands such as Barclays Clydesdale Finance. In some cases the paperwork referred to Barclays Partner Finance Clydesdale. Different labels, same underlying question: did the commission structure push your costs higher without a clear explanation?

The FCA banned discretionary commission arrangements for new business in 2021 [1]. Older loans are now under scrutiny. That includes Clydesdale car finance PCP contracts and hire purchase deals that were sold when commission flexibility was still common.

What changed in 2025?

A Supreme Court decision. In August 2025 the Supreme Court confirmed that having a commission is not automatically unlawful [2]. The court also confirmed that hidden or excessive commission can still create an unfair relationship under consumer credit law. If the commission affected what you paid, and it was not explained in a way you could reasonably understand, redress may be due.

An FCA consultation. In October 2025 the regulator opened a six-week consultation on a national redress scheme [3]. The scope covers finance agreements entered between 6 April 2007 and 1 November 2024. That includes loans introduced by dealers who worked with Clydesdale Partner Finance. The consultation sets out options for consistent calculations, eligibility rules and clear deadlines.

A temporary pause on outcomes. Firms are not required to provide final responses on commission-related complaints until 4 December 2025 [4]. You can still lodge a complaint today. It will be logged and queued. The FCA has also proposed that all lenders issue final responses by 31 July 2026, once rules are in place. Payments are expected to begin later in 2026, subject to the final framework.

Three ways an agreement can be unfair, according to the FCA

Discretionary commission arrangements

Dealers could raise your rate and earn more as a result. Many customers were never told that the interest they paid was linked to a commission target. If you took out Clydesdale Bank car finance in this period, your rate may have been affected by that incentive.

High commission structures

Some agreements paid the broker very large sums even where the rate was fixed. The FCA highlights structures where commission was 35 percent or more of the total cost of credit or 10 percent or more of the loan amount. High payments of this kind can distort the sale.

Restricted access to lenders

Some showrooms mainly offered credit from one lender. If you were told only one option was available, or alternatives were not explained, the sale may be unfair. This point is relevant where you were guided toward Clydesdale Finance Barclays without a balanced comparison.

Simple signs your loan might have been mis-sold

Think back to what you were told on the day.

• You were not told that the dealer or broker would receive a commission.
• Your APR felt high for your credit profile and nobody gave a clear reason.
• You were told that Clydesdale Partner Finance was your only realistic option.
• On a PCP, the balloon payment or mileage rules were not explained in plain language.
• Administration fees or early settlement charges appeared later and were not discussed at the start.
• You felt under time pressure to sign there and then.

If two or more of those points sound familiar, it is worth reviewing the paperwork and considering a Clydesdale finance complaint.

Who might qualify for a Clydesdale finance refund?

You could be eligible if:

• Your agreement started between 6 April 2007 and 1 November 2024, or was still active after April 2007.
• Commission was not disclosed in a way you could reasonably understand.
• The interest rate or fees were higher than you were led to expect.
• PCP features, such as the optional final payment, were not set out clearly.
• The overall relationship with the lender is now considered unfair in light of the FCA’s findings.

A successful outcome often returns overpaid interest that flowed from the commission model. Many decisions may also add simple interest on the refund amount, usually referenced to the Bank of England base rate plus one percentage point. Unfair credit markers can be corrected where appropriate.

How redress is likely to be calculated

The FCA proposes a hybrid method that looks at the commission involved and the interest you overpaid because of that commission.

Typical outcome

Around £700 per eligible agreement is the current market-wide estimate [5]. It is a guide, not a promise.

More serious cases

Where the commission was very high, or disclosure was particularly weak, proposals include returning the full commission with interest.

Extras

You may see refunds of unfair fees and interest on the redress amount. If the issue contributed to inaccurate markers on your credit file, those can be corrected.

This approach is designed to apply consistently across lenders. It will cover agreements connected with Barclays Clydesdale Finance as well as loans that reference Barclays Partner Finance Clydesdale on the paperwork.

How to bring a Clydesdale Partner Finance claim

You have three routes. You can complain directly to the lender. You can go to the Financial Ombudsman Service. You can appoint a regulated representative. The core steps are the same.

Step 1. Collect your documents

Find your agreement, pre-contract information, showroom quotes and emails. If you do not have them, ask the lender for copies. Mention your agreement number with Clydesdale Finance Barclays if you still have it. 

Step 2. Sense-check the numbers

Write down the APR, the monthly payment and the total repayable. If you had a PCP, note the optional final payment and any mileage limits. If this was a Clydesdale bank car loan under HP, list any fees for early settlement and any option to purchase fee.

Step 3. Describe what went wrong

Use plain English. A short paragraph works best.

• “I was not told that the dealer could increase my rate and earn more commission.”
• “The balloon payment on my Clydesdale Bank PCP was not explained in a way I could understand.”
• “I was told there was only one finance option and I was not encouraged to compare alternatives.”

Finish with 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.

Step 4. Send the complaint

Use email, post, or the lender’s web form. Keep copies and log the date. This creates a timeline. It also helps if you later go to the Ombudsman.

Step 5. Be patient during the pause

Firms usually have eight weeks to reply. Commission-related final responses are paused until 4 December 2025. Submitting now means your case is in the queue. It will be assessed once the regulator confirms the new rules.

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. The Ombudsman is free and independent. Many customers take this route where they believe the first decision did not reflect the evidence.

Should you use a professional representative?

You can do everything yourself for free. Some people still prefer help because they are missing paperwork, they want someone to manage the process, or they feel more confident with a specialist involved.

If you choose a representative, pick a regulated finance claims expert or solicitor. Check they are authorised by the FCA for claims management activity. Read the client agreement and make sure the fee structure is clear. Success fees in this sector are often between 18 and 36 percent including VAT and apply only if redress is secured.

Representation does not make you more eligible. It is simply a service that some people find useful.

Practical tips that make your claim easier

Keep everything in one folder. Emails, letters, statements and settlement figures.

Use simple headings in your letter. Agreement details, what happened, why it matters, what you want.

Do not guess numbers. If you cannot find a figure, ask for a copy of the document.

Avoid loaded language. Stick to facts. The reviewer is more likely to engage quickly.

Key timeline at a glance

• August 2025: Supreme Court confirms commissions can create unfair relationships.
• October 2025: FCA opens a six-week consultation on a national redress scheme.
• 18 November 2025: Consultation closes.
• 4 December 2025: Pause on commission-related final responses ends.
• Early 2026: FCA aims to publish final rules and confirm calculation methods.
• 31 July 2026: Proposed deadline for firms to issue final responses.
• Late 2026: Compensation payments expected to begin, subject to final rules.

Submitting your complaint now simply places your Clydesdale Partner Finance case in the queue so it is ready for review when decisions restart.

Frequently Asked Questions

Can I claim if my car has been sold or my loan is finished?

Yes. Finished agreements can still be in scope if they fall within the dates covered by the consultation.

Does the review cover PCP and HP?

Yes. Clydesdale car finance PCP and hire purchase are both included.

What if I only have part of my paperwork?

Send what you have and ask the lender for copies of the rest. You can still start your complaint.

How much might I receive?

The market estimate is around £700 per eligible agreement. Your figure will depend on the commission structure, the term, and your payments.

Is there a difference between a refund and compensation?

People often use the words together. A refund usually returns overpaid interest and undisclosed commission. Compensation can include that refund plus simple interest and credit file corrections where appropriate.

Compliance and clarity

No outcome is guaranteed.

Average figures are estimates, not promises.

You can complain directly for free. You can use the Ombudsman for free.

If you appoint a firm, make sure it is FCA-authorised and that fees are clear.

Details may change when the FCA publishes final rules in 2026.

Final thoughts

Buying a car should feel exciting, not confusing. If you used Clydesdale Partner Finance and later discovered that commission incentives may have shaped your interest rate, you have every right to ask for a fair review. 

Start with a calm check of your documents. Write a short, clear letter. Keep copies. If you want guidance, a regulated professional can help you present the facts. Whether you go alone or with support, a well-prepared Clydesdale car finance claim gives the decision maker what they need to assess your position properly.

The aim is simple. A result that reflects what you actually paid and what you should have paid under a transparent, balanced agreement.

_________

References:

1. The FCA banned discretionary commission arrangements for new business in 2021 - https://www.fca.org.uk/publication/consultation/cp24-15.pdf
2. In August 2025 the Supreme Court confirmed that having a commission is not automatically unlawful - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
3. In October 2025 the regulator opened a six-week consultation on a national redress scheme - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
4. Firms are not required to provide final responses on commission-related complaints until 4 December 2025 - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
5. Around £700 per eligible agreement is the current market-wide estimate - https://www.fca.org.uk/news/press-releases/14m-unfair-motor-loans-compensation-proposed-scheme