Barclays Partner Finance may be better known for funding mainstream brands like Ford, Audi, and Mercedes, but it now finds itself under regulatory and legal scrutiny. In early 2024, Barclays set aside around £90 million for “potential motor-finance customer redress,” while the Financial Conduct Authority (FCA) confirmed that historic commission models used by multiple lenders, including Barclays, are part of an ongoing industry-wide review.
This guide distils the public evidence so far, giving Barclays customers a clear view of why mis-selling allegations have emerged and what compensation could look like if their PCP contract was affected.
Why Commission Structures Matter
Before the FCA banned discretionary commission models in January 2021, Barclays allowed car dealers to adjust a customer’s interest rate and earn a bigger commission in return. Simply put, the higher the APR the customer accepted, the more the dealer pocketed—often without clear disclosure of this incentive.
This model is now central to many complaints. When a PCP deal is challenged, the focus is usually on whether the dealer or lender:
- failed to disclose a commission,
- set the APR higher than necessary, and
- bypassed affordability checks that would have protected the consumer.
Recent decisions show that:
- Where a discretionary commission arrangement (DCA) is confirmed and not properly disclosed, redress can include a refund of excess interest/commission.
- If affordability checks were also inadequate (e.g., no payslips or proof of income were taken), an “unfair relationship” complaint under Section 140A of the Consumer Credit Act 1974 may be strengthened.
Takeaway: undisclosed commission plus inadequate affordability checks can create a strong basis for redress.
Three Emerging Themes in Barclays PCP Complaints
Although each case is unique, many upheld claims follow one or more of the patterns below. Recognising these in your paperwork could help support your PCP claim.
| Theme | How It Shows Up in Paperwork | Why It Matters |
| Hidden commission uplift | SECCI shows a high APR, but no meaningful explanation of commission | May not meet FCA expectations on transparency around commission payments |
| Affordability shortcuts | Credit application lists rounded income (e.g., £30,000) without supporting bank statements or payslips | May not meet FCA CONC 5 requirements to verify affordability |
| Inflated interest vs similar customers | APR materially above contemporaneous offers/quotes | Indicates possible dealer uplift linked to commission incentives |
These signs often don’t appear alone. Cases where more than one applies typically attract more scrutiny.
Regulator Signals to Watch
The FCA has not yet triggered final rules for compensation but has set out clear next steps. After the Supreme Court’s ruling on 1 August 2025, most viable complaints now proceed under the Consumer Credit Act s.140A “unfair relationship” route. The FCA has said it will consult on an industry-wide redress scheme in October 2025, has paused firms’ final responses on commission complaints until 4 December 2025, and has indicated that many successful claims may be around £700 per agreement, with payments expected from 2026.
| Milestone | What It Says | Implication for Barclays Customers |
| FCA pause on complaint deadlines (to 4 Dec 2025) | Complaint handling timelines paused for commission-related cases | You can still complain now; most final responses will follow after the pause |
| Supreme Court decision (1 Aug 2025) | Confirms s.140A CCA as the main legal route; focus on unfairness (disclosure, APR setting, affordability) | Clarifies how complaints will be assessed going forward |
| FCA consultation (Oct 2025) | Proposes a consumer redress scheme; payments expected from 2026 | Scheme likely sets a standardised approach and timelines |
| Barclays’ ~£90m provision (2024 accounts) | Public estimate of potential exposure | Signals the lender anticipates settling well-evidenced cases |
These milestones don’t guarantee refunds but shift the balance towards a clearer process for affected consumers.
How Barclays Compares to Other Lenders
Barclays exited the motor finance market in 2019 yet still faces potential liability on legacy agreements it underwrote. Its £90m provision is material in the context of its historical market share and indicates preparedness to resolve well-supported complaints. Barclays has also pursued legal challenges in some matters, but the current landscape—post-Supreme Court and with an FCA scheme pending—emphasises s.140A unfairness and standardised redress.
What Barclays Customers Should Do Next
Here’s a quick action plan for affected customers:
- Request your documents – Make a Subject Access Request (SAR) for your SECCI, credit application, and any commission disclosures (Barclays’ privacy pages give the route).
- Look for red flags – Was your APR higher than expected? Was any commission disclosed? Were you asked for proof of income?
- Submit a formal complaint – Use your evidence to request redress, quoting FCA CONC (commission and affordability) and Consumer Credit Act s.140A. Note the FCA pause to 4 December 2025 on final responses for commission complaints.
- Be ready to escalate – If your complaint is rejected (or once a response arrives after the pause), you can take your case to the Financial Ombudsman Service.
How PCP ClaimBack Can Help with Your Barclays PCP Complaint
Pursuing a Barclays claim requires understanding the evidence and presenting it clearly. PCP ClaimBack can assist with:
- Professional Claim Reviews – We help identify signs of inflated interest or missing disclosures.
- Comprehensive Claim Management – We handle correspondence, timelines, and clear, FCA-aligned arguments on your behalf.
- Financial Ombudsman Support – If Barclays disputes your complaint, we guide you through escalation.
- No Win, No Fee – A success fee between 18% and 36% (including VAT) will be charged if your claim is successful. If you cancel your claim after the 14-day cooling-off period, you may still be charged a fee to cover our reasonable costs incurred in relation to Our Services at the rate of £75 per hour (including VAT).
“The Barclays cases we see often involve APRs lifted well above typical rates by discretionary commissions. If the customer never knew about that uplift, they could be owed compensation.” – Craig Gedey, Claims Specialist, PCP ClaimBack
Think your PCP agreement was affected? Start with our Barclays PCP claims page.
