Barclays Partner Finance is one of the lenders affected by the Financial Conduct Authority's (FCA) motor finance investigation into
discretionary commission arrangements (DCAs). As a finance arm of Barclays plc, it offers
Personal Contract Purchase (PCP) and
Hire Purchase (HP) agreements through dealer networks for various vehicle types. This guide will help you understand how DCAs were used in your Barclays Partner Finance agreement, how to check if you are covered by the FCA redress scheme., and what steps to take next.
## Who is Barclays Partner Finance?
Barclays Partner Finance is a division of Barclays plc, a major UK financial institution offering a range of banking and finance services. It specializes in car finance through dealer networks, providing Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements for vehicles ranging from cars to commercial vans. These agreements are widely used by consumers seeking convenient financing options for their vehicle purchases.
## How did Barclays Partner Finance use discretionary commission arrangements?
Discretionary commission arrangements (DCAs) allowed dealers using Barclays Partner Finance to set the interest rates on car finance agreements. This practice was common across various lenders from 6 April 2007 to 1 November 2024, during which time many consumers entered into car finance agreements that could have been affected by DCAs.
In essence, under a DCA, dealers were incentivised financially based on the interest rates they set for customers. This arrangement meant that some customers may have received higher interest rates than necessary, leading to overcharging and potential unfair treatment.
## How many Barclays Partner Finance customers are affected?
The FCA's investigation into DCAs found that millions of car finance agreements across different lenders were potentially affected by this practice. Specifically:
- 12.1 million eligible agreements (FCA, March 2026)
- £7.5 billion total value of these agreements (FCA estimate)
- An average compensation amount of £829 per agreement (FCA estimate)
Given these figures, it is highly likely that a significant number of Barclays Partner Finance customers are included in the affected group.
## How to Check Your Agreement from Barclays Partner Finance, follow these steps:
1.
Identify Your Agreement Type and Date Range:
- Check if your car finance agreement was a PCP or HP.
- Ensure the agreement falls within the period from 6 April 2007 to 1 November 2024.
2.
Look for Evidence of Discretionary Commission Arrangement (DCA):
- Review your original loan documentation, including any letters or emails you received at the time.
- Note if there is any indication that a dealer set your interest rate as part of a DCA arrangement.
3.
Find Your Agreement Number:
- Locate the agreement number on your finance contract, monthly statements, or correspondence from Barclays Partner Finance.
- This number will be essential when making a complaint.
##
How to complain to Barclays Partner Finance directly for free
If you believe your car finance agreement was affected by DCAs with Barclays Partner Finance, you can make a complaint directly to the lender. Here’s how:
1.
Prepare Your Complaint:
- Gather all relevant documentation, including your loan agreement and any correspondence related to your interest rate.
2.
Contact Barclays Partner Finance:
- You can contact them via phone or email. Their customer service details are available on their website.
- Provide your full name, address, and agreement number when initiating the complaint.
3.
Provide Detailed Information:
- Explain in detail why you believe your agreement was affected by a DCA.
- Include any evidence that supports your claim.
4.
Follow Up Regularly:
- Keep track of all communications with Barclays Partner Finance.
- Follow up every 2 weeks to check on the status of your complaint.
Remember, "You can complain to Barclays Partner Finance directly for free - you do not need a
claims management company."
## What compensation could Barclays Partner Finance customers receive?
The FCA has estimated that affected car finance agreements may be eligible for an average compensation amount of £829 (FCA estimate). However, the actual amount you might receive can vary based on factors such as:
- The length and terms of your agreement
- Whether a DCA was in place during your financing period
- Any evidence supporting higher interest rates set by dealers
Barclays Partner Finance will assess each complaint individually to determine appropriate compensation. This process aims to ensure fair treatment for all affected customers.
## Escalating a Barclays Partner Finance complaint to the
Financial Ombudsman
If you are not satisfied with the response from Barclays Partner Finance, you can escalate your complaint to the Financial Ombudsman Service (
FOS) free of charge after 8 weeks. The FOS is an independent body that resolves disputes between consumers and financial service providers.
Here’s how to escalate:
1.
Contact the FOS:
- Visit the FOS website for detailed instructions on submitting a complaint.
- Provide all relevant documents, including your Barclays Partner Finance agreement details and any correspondence with the lender.
2.
Timeline and Process:
- The FOS will review your case and may request additional information from both you and Barclays Partner Finance.
- You can expect a decision within 3 months of submitting your complaint to the FOS.
## Barclays Partner Finance and the FCA redress scheme
Barclays Partner Finance, like other affected lenders, has acknowledged the FCA's investigation into DCAs. The lender is working with regulatory bodies to establish provisions for compensating affected customers. While specific details are still being finalised, Barclays Partner Finance aims to provide fair compensation based on individual cases.
Customers should monitor official communications from Barclays and the FCA for updates regarding the redress scheme timeline and process.
## Sources and references
- Financial Conduct Authority (FCA) estimate of 12.1 million eligible agreements (FCA, March 2026): [FCA Report on DCAs, 2024]
- Total value of affected agreements (£7.5 billion): [FCA Report on DCAs, 2024]
- Average compensation amount (£829 per agreement): [FCA Report on DCAs, 2024]
This guide aims to provide clear and full information about Barclays Partner Finance's involvement in the FCA motor finance investigation. It is designed to help you deal with the process of claiming potential compensation directly from the lender without the need for a claims management company.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.