Updated: 24 August 2026

Originally Published: 24 March 2025

Quick answer

If you had motor finance through Clydesdale Partner Finance, Clydesdale Finance or Barclays Partner Finance, your agreement may fall within the FCA's motor finance redress scheme if it meets the applicable criteria.

The names require some clarification. Clydesdale Financial Services Limited is part of the Barclays Group and trades as Barclays Partner Finance. This is distinct from Clydesdale Bank.

The position has also changed significantly since this guide was last updated. The FCA introduced its motor finance redress scheme in March 2026 [1], but legal challenges led the Upper Tribunal to partially suspend elements of the scheme in July [2].

The Upper Tribunal will hear those challenges either between 14 and 18 December 2026 or between 16 and 26 February 2027. Until the legal process concludes, lenders are not required to calculate or pay redress under the suspended elements of the scheme.

Consumers can still complain while the proceedings continue.

Clydesdale, Barclays Partner Finance and Barclays: why the names can be confusing

Older finance agreements can be difficult to identify because several similar names appear in searches and historic records.

Clydesdale Financial Services Limited is part of the Barclays Group. Barclays Partner Finance is one of its trading names. The FCA's lender directory also lists names including Barclaycard Motor Loans against Clydesdale Financial Services Limited.

This is different from Clydesdale Bank plc.

That distinction matters for motorists searching for Clydesdale Bank car finance, Clydesdale Bank car loan, Clydesdale Bank PCP or Clydesdale car finance PCP. The legal lender shown on the agreement should be identified before deciding which business or scheme rules are relevant.

Search terms such as Clydesdale Finance Barclays, Barclays Clydesdale Finance and Barclays Partner Finance Clydesdale may appear online, but they are not formal company names.

Why Clydesdale Financial Services became important to the DCA debate

The legal history surrounding Clydesdale car finance predates the 2026 FCA car finance redress scheme.

Clydesdale Financial Services Limited, trading as Barclays Partner Finance, was involved in an important case concerning a discretionary commission arrangement, commonly known as a DCA.

The Financial Ombudsman had upheld a consumer complaint about the arrangement. Barclays Partner Finance challenged that decision through judicial review.

On 17 December 2024, the High Court dismissed all three grounds of challenge.

The FCA said the Court found that the Ombudsman had correctly interpreted its rules and the Consumer Credit Act 1974 in that case [3]. It also said the Ombudsman was entitled to find that the commission arrangements had not been adequately disclosed and that the lender and borrower relationship was unfair in those circumstances.

The judgment did not establish that every Barclays Partner Finance or Clydesdale finance agreement was unfair.

How is that different from the 2026 legal challenges?

The current Upper Tribunal proceedings are separate.

The 2024 judicial review concerned a Financial Ombudsman decision about a particular DCA complaint. The 2026 challenges concern elements of the FCA's industry wide motor finance redress scheme.

The four current challengers are CA Auto Finance UK Limited, Consumer Voice Limited, Mercedes Benz Financial Services UK Limited and Volkswagen Financial Services UK Limited [4].

Clydesdale Financial Services Limited is not listed among them.

This distinction is central to understanding the current position. The earlier case concerned an individual Ombudsman decision. The Upper Tribunal proceedings could affect how elements of the wider FCA scheme operate.

What Was a Discretionary Commission Arrangement?

A discretionary commission arrangement allowed a broker or dealer discretion over the customer’s interest rate in a way that could affect the commission received.

This could create a financial incentive connected with the rate offered to the customer.

The FCA banned DCAs in motor finance in 2021 [5].

For consumers considering PCP finance claims or other historic motor finance complaints, the important question isn't simply whether a dealer received commission. It is whether a relevant arrangement existed and whether the applicable requirements for redress are met.

What Has Changed Since This Guide Was Last Updated?

• 17 December 2024: High Court dismissed the Barclays Partner Finance challenge to the Ombudsman’s DCA decision.
• 30 March 2026: FCA introduced its motor finance consumer redress scheme.
• April 2026: Previous version of this guide was published.
• April and May 2026: Four legal challenges were brought against elements of the FCA scheme.
• 1 July 2026: Upper Tribunal ordered a partial suspension of parts of the scheme.
• August 2026: Complaints can continue while specified elements of the scheme remain suspended.
• 14 to 18 December 2026 or 16 to 26 February 2027: Upper Tribunal will hear the legal challenges during one of these periods.

What Types of Finance Arrangement Could Matter?

The FCA scheme does not treat every commission payment as evidence of car finance mis-selling.

Instead, three broad types of arrangement can be relevant: discretionary commission arrangements, high commission arrangements and certain tied relationships between lenders and brokers.

Identifying one does not automatically establish entitlement to compensation. The other requirements of the FCA scheme must also be met.

Discretionary commission arrangements

A discretionary commission arrangement allowed a broker or dealer discretion over the customer's interest rate in a way that could affect the commission received.

This created a potential financial incentive connected with the rate offered to the customer. The FCA banned DCAs in motor finance in 2021.

DCAs are particularly relevant to Clydesdale Partner Finance because the earlier Barclays Partner Finance judicial review concerned this type of arrangement.

High commission arrangements

Certain high commission arrangements can also be relevant.

Under the final scheme, high commission means commission representing at least 39% of the total charge for credit and 10% of the amount of credit [6].

This means an agreement can potentially be relevant even where the broker did not have discretion over the interest rate.

Tied arrangements

Certain contractual relationships between lenders and brokers can also fall within the scheme.

A tied arrangement can involve a broker being required to introduce consumers exclusively to one lender or give that lender the first opportunity to provide finance.

Simply remembering that a dealership offered one finance provider does not establish a tied arrangement or prove mis-sold car finance.

Could you have a Clydesdale car finance claim?

Not every agreement associated with Clydesdale Partner Finance or Barclays Partner Finance will qualify.

A potential car finance claim needs to meet the applicable FCA scheme conditions. Relevant factors include the agreement itself, whether commission was payable by the lender to a broker and whether a qualifying commission or tied arrangement existed.

An agreement does not automatically fall outside the scheme because the finance has ended, you settled early or you no longer own the vehicle.

Equally, paying a high interest rate or knowing that a dealer received commission does not establish car finance mis selling.

When might an agreement be ineligible?

An agreement may fall outside the scheme where it does not meet the FCA's definition of a scheme case or another applicable condition is not satisfied.

The rules contain requirements and exclusions relating to matters including commission, relevant arrangements and the circumstances of the agreement.

For example, an arrangement is not treated as relevant where the applicable commission falls below the scheme's de minimis threshold or the agreement had an APR of 0%.

Eligibility therefore depends on the agreement and FCA rules rather than the lender name, product type or amount paid alone.

What about PCP car finance?

PCP car finance can fall within the FCA scheme, but PCP itself is not evidence of mis selling.

For PCP finance claims, the relevant question is whether the agreement and circumstances meet the applicable scheme requirements.

Someone searching for a Clydesdale Bank PCP or Clydesdale car finance PCP agreement should first identify the actual lender. Clydesdale Bank and Clydesdale Financial Services Limited are different businesses.

A PCP claim or PCP compensation claim also does not mean every payment made under the agreement will be returned as a PCP refund. Compensation depends on the applicable redress methodology.

What Does the Partial Suspension Mean for Clydesdale Finance Customers?

This is where the August 2026 position becomes particularly important.

On 1 July 2026, the Upper Tribunal ordered a partial suspension of elements of the FCA's motor finance redress scheme while the legal challenges continue.

The entire scheme has not been suspended.

Firms must continue complying with rules that remain in force. This includes identifying relevant complaints and agreements and gathering information needed to determine commission arrangements and disclosure practices. Firms must also respond to certain consumers who are found not to be owed compensation.

However, firms are not currently required to calculate or pay redress, or send communications about compensation owed under the suspended elements, until the Upper Tribunal process concludes.

For someone considering car finance claims, this creates an important distinction.

The assessment process has not stopped completely. Compensation calculations and payments affected by the suspension are delayed.

The general motor finance complaint handling pause also expired on 31 May 2026. Complaints entirely outside the scope of the scheme should now be progressed through the usual process.

When Will the Upper Tribunal Hear the Challenges?

The Upper Tribunal will hear the challenges either between 14 and 18 December 2026 or between 16 and 26 February 2027.

The final dates depend on whether any party applies for further expert opinion or disclosure and whether that application succeeds. A judgment is expected in the months following the hearing.

If the scheme is upheld and the judgment is not appealed, the FCA expects payments under the scheme to begin in 2027. If the scheme is overturned in whole or in part, the FCA will need to decide what happens next.

How could Clydesdale car finance compensation work?

There is no standard compensation amount for a Clydesdale car finance agreement.

Across the wider scheme, the FCA estimates around 12.1 million agreements could be eligible, with average redress of approximately £829 per eligible agreement [7]. This is a market wide estimate, not a prediction of what an individual customer could receive.

The amount of car finance compensation depends on the agreement, relevant arrangement and applicable FCA methodology.

Terms such as car finance refund and PCP refund should not be interpreted as meaning every successful customer will receive all their finance payments back.

What Happened to Payouts 2026?

When the FCA introduced the scheme on 30 March 2026, it expected millions of claims to be settled during 2026, with the vast majority completed by the end of 2027.

The subsequent legal challenges changed that position.

The Upper Tribunal has partially suspended elements of the scheme. Until the legal process concludes, firms are not required to calculate or pay compensation under the suspended provisions.

This means information about payouts 2026 published before the July suspension may no longer reflect the current timetable.

If the scheme is upheld and the judgment is not appealed, the FCA expects payments under the scheme to begin in 2027.

There is therefore no reliable individual payment date for a car finance claim or PCP claim affected by the suspended provisions.

How to Find an Older Clydesdale or Barclays Partner Finance Agreement

Older agreements can be particularly confusing because the lender name may not be the one you remember.

The FCA currently lists Barclays Partner Finance, Barclaycard Motor Loans, Barclaycard Loans and Personal Loans from Barclaycard against Clydesdale Financial Services Limited.

If you no longer have the agreement, useful places to check include:

• old emails and finance statements
• bank statements showing repayments
• vehicle purchase paperwork
• dealership correspondence
• the vehicle registration
• credit records from TransUnion, Experian or Equifax

Look for the legal lender or trading name rather than relying solely on your memory of the dealership.

This matters because Clydesdale Bank should not automatically be assumed to mean Clydesdale Financial Services Limited or Barclays Partner Finance.

What Is a Car Finance Refund Check?

A car finance refund check is an initial way of looking at whether an older agreement may be relevant.

It may help establish basic information such as the lender, approximate agreement date and whether further assessment is appropriate.

A PCP claim check can serve a similar purpose where PCP finance was involved.

Neither process proves car finance mis selling.

It also does not guarantee a car finance refund, PCP refund or compensation.

For older Clydesdale related agreements, identifying the correct lender should come first.

What Can You Do While the Legal Process Continues?

The partial suspension does not mean consumers are prevented from raising concerns about historic motor finance.

The general complaint handling pause ended on 31 May 2026. The FCA says consumers can still complain to firms, while complaints and scheme cases are progressed according to the rules that remain in force.

There are several routes available.

Contact the Lender Directly

Consumers can complain directly without professional representation.

For Barclays Partner Finance, the FCA lender directory currently identifies Clydesdale Financial Services Limited as the lender and provides Barclays Partner Finance contact details.

This makes identifying the lender particularly important before submitting a complaint.

Seek Independent Legal Advice

Some motorists choose independent legal advice, particularly where their circumstances raise questions outside the standard FCA scheme.

Fees and funding arrangements vary, so these should be checked before instructing a solicitor.

Use a Regulated Claims Management Company

Some consumers choose an FCA regulated claims management company to help identify agreements or manage correspondence.

Using professional representation does not alter the FCA’s eligibility criteria.

Consumers do not need a finance claims expert to access the scheme. The FCA states that the industry wide scheme is free for consumers to use.

Frequently Asked Questions

Is Clydesdale Partner Finance the same as Barclays Partner Finance?

The terminology can be confusing.

The FCA currently lists Barclays Partner Finance against Clydesdale Financial Services Limited. FCA material has also referred to Clydesdale Financial Services Limited as trading as Barclays Partner Finance.

This helps explain why people searching for older agreements may use terms such as Clydesdale Partner Finance, Clydesdale Finance Barclays, Barclays Clydesdale Finance and Barclays Partner Finance Clydesdale.

These search terms should not be treated as formal company names. If you are checking an older agreement, look for the legal lender or trading name shown on your finance documents.

What happened in the Barclays Partner Finance judicial review?

The case concerned a Financial Ombudsman decision involving a discretionary commission arrangement, commonly known as a DCA.

Barclays Partner Finance challenged the Ombudsman's decision through judicial review. On 17 December 2024, the High Court dismissed all three grounds of challenge.

The FCA said the Court found that the Ombudsman had correctly interpreted FCA rules and the Consumer Credit Act 1974 when reaching its decision in that particular case.

The judgment does not mean every historic Barclays Partner Finance or Clydesdale finance agreement qualifies for compensation. Individual agreements still need to meet the applicable requirements.

Is Clydesdale Financial Services challenging the 2026 FCA scheme?

No. Clydesdale Financial Services Limited is not listed by the FCA as one of the four parties challenging the 2026 motor finance redress scheme.

The current challengers are CA Auto Finance UK Limited, Consumer Voice Limited, Mercedes Benz Financial Services UK Limited and Volkswagen Financial Services UK Limited.

The earlier Barclays Partner Finance judicial review and the current Upper Tribunal proceedings are separate legal matters.

What does the partial suspension mean for my claim?

The entire motor finance redress scheme has not been suspended.

The Upper Tribunal has temporarily suspended specified elements while the legal challenges continue. Firms can continue preparing for the scheme and progressing complaints where the rules permit.

However, lenders are not currently required to calculate or pay compensation under the suspended elements until the legal process concludes.

Consumers can still raise concerns about historic car finance claims with their lender.

When will the Upper Tribunal hear the challenges?

The Upper Tribunal will hear the challenges either between 14 and 18 December 2026 or between 16 and 26 February 2027.

Which hearing period applies will depend on procedural developments, including whether further expert opinion or disclosure is sought and whether any such application succeeds.

A judgment is expected in the months following the hearing. This means there is currently no confirmed individual compensation date for affected car finance claims or PCP claims.

Can I claim if my Clydesdale finance agreement has ended?

Potentially.

An agreement does not automatically fall outside the FCA scheme because the finance has been repaid, settled early or the vehicle is no longer owned.

Eligibility depends on whether the historic agreement falls within the scope of the scheme and meets the applicable criteria.

Can I make a Clydesdale PCP claim?

Potentially, but the lender and agreement should first be identified correctly.

Having PCP car finance does not automatically mean you had mis-sold PCP car finance. For PCP finance claims, the relevant circumstances concern how the finance was arranged and whether the agreement meets the FCA scheme requirements.

The same principle applies to an individual PCP claim, wider PCP claims and searches for PCP car claims.

Do I need the original finance agreement?

Not necessarily.

If the paperwork is missing, you may be able to identify an older agreement using bank statements, emails, dealership records, vehicle purchase documents or previous correspondence.

You can also check your credit history through agencies such as TransUnion, Experian or Equifax. Depending on the age of the agreement and the information still recorded, this may help identify the lender.

A car finance refund check or PCP claim check may also help establish basic information about an agreement. Neither confirms eligibility or guarantees compensation.

Two Legal Stories, One Important Distinction

One legal story concerns the historic Barclays Partner Finance DCA complaint and the High Court judicial review.

The other concerns the legal challenges now facing the FCA’s industry wide motor finance redress scheme.

They form part of the wider car finance scandal, but they are not the same proceedings.

For motorists investigating Clydesdale car finance, Clydesdale Partner Finance or Barclays Partner Finance, the practical starting point remains the individual agreement.

Identify the lender. Establish how the finance was arranged. Then consider whether the agreement falls within the applicable FCA rules.

The Upper Tribunal proceedings may affect how the wider redress scheme operates and when compensation can be paid. They do not determine whether an individual car finance claim will be eligible.

Consumers can still raise concerns about historic motor finance while the legal process continues. Those who want support identifying an agreement or checking potential eligibility can also choose to use a regulated service such as Reclaim247.

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References:

1. The FCA introduced its motor finance redress scheme in March 2026 - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
2. legal challenges led the Upper Tribunal to partially suspend elements of the scheme in July - https://www.fca.org.uk/news/statements/motor-finance-scheme-partially-suspended
3. The FCA said the Court found that the Ombudsman had correctly interpreted its rules and the Consumer Credit Act 1974 in that case - https://www.fca.org.uk/news/statements/fca-responds-high-court-motor-finance-judicial-review-decision
4. The four current challengers are CA Auto Finance UK Limited, Consumer Voice Limited, Mercedes Benz Financial Services UK Limited and Volkswagen Financial Services UK Limited - https://consumervoice.uk/cars/fca-car-finance-compensation-challenge/
5. The FCA banned DCAs in motor finance in 2021 - https://www.fca.org.uk/news/press-releases/fca-ban-motor-finance-discretionary-commission-models
6. Under the final scheme, high commission means commission representing at least 39% of the total charge for credit and 10% of the amount of credit - https://handbook.fca.org.uk/handbook/conred5/conred5s1
7. the FCA estimates around 12.1 million agreements could be eligible, with average redress of approximately £829 per eligible agreement - https://www.fca.org.uk/publication/policy/ps26-3.pdf