Barclays Offers Early Settlements for Car Finance Complaints Recognised by 1 October 2026

Key Facts

Barclays Partner Finance confirmed it will make early settlement offers to some car finance customers whose complaints about commissions were upheld by 1 October 2026, giving them the option to receive compensation sooner. The move comes as the compensation scheme set up by the UK Financial Conduct Authority remains partly suspended because of legal appeals. The regulator said it supports lenders making settlement offers, provided customers receive no less than they would have been entitled to under the scheme. Barclays’ offers therefore target a specific group of complainants and do not make early settlement available to all borrowers. The regulator sets rules on what customers can choose and what follows if they accept or reject an offer.

A customer can reject the offer and leave their complaint to be handled under the scheme, while accepting it allows them to keep the amount offered without seeking additional compensation later. An accepted offer also cannot be referred to the Financial Ombudsman Service for review, according to the regulator. This means the early compensation option involves a final decision on the claim, while the scheme route remains available to those who reject the offer. The regulator supports early offers as long as they are no lower than the amount the customer would receive under the scheme. Barclays did not say that every complainant would receive an offer.

Sky News reported that recipients of Barclays’ offers would account for a small share of the bank’s total bill related to mis-sold car finance, estimated at about £430m in its report published on 2 November 2026. The broadcaster said Barclays would be the first major UK lender to begin offering compensation payments that week, with offers going to a limited group of borrowers. The figure provides context for the scale of the liability reported by the broadcaster, but does not specify the value of individual offers or the number of customers they will cover. Nor does it establish that the bank announced a general timetable for settling the remaining claims. Eligibility for a specific complaint and the date it was upheld remain the basis for the offer confirmed by the bank.

The regulator’s scheme covers car finance agreements made between 6 April 2007 and 1 November 2024 if the lender paid commission to the broker. The final rules estimate that about 12.1 million agreements qualify, down from 14.2 million at the consultation stage. The regulator estimated average compensation of about £829 per eligible agreement. These estimates set out the scheme’s scope and potential scale, but do not mean every eligible agreement will receive the same average amount. Barclays’ early offers remain tied to customer complaints the bank upheld by the specified date, rather than to all agreements covered by the scheme.

The early settlement option comes in response to interest from complainants in receiving an offer before the regulatory process concludes. In a survey published by the regulator on 3 November 2026, 89% of customers who had complained or were considering doing so said they wanted the option of an offer of compensation now, while 61% said they would accept an offer aligned with the scheme. A total of 77% said receiving compensation sooner would make a big or reasonable difference to their finances. The online survey was conducted between 25 and 28 June 2026 among 1,000 car finance customers, and the results cited were based on a subgroup of 590 participants who had complained or were considering doing so. The findings show how important the timing of compensation is to participants, as appeals against the scheme continue.

The legal appeals are scheduled to be heard by the court between 16 February and 3 March 2027. During the partial suspension, firms are not required to calculate or pay compensation under the scheme before the legal proceedings conclude, according to the Financial Conduct Authority. This timetable provides the backdrop to some lenders’ decision to make early settlement offers, while the scheme itself remains subject to the outcome of the appeals. The regulator has confirmed its support for offers provided they are no lower than the compensation available under the scheme, while customers retain the right to reject an offer and leave their complaint to the regulatory process. The available evidence does not specify when Barclays will finish handling its other complaints.