Barclays Partner Finance is one of the lenders that has been affected by the Financial Conduct Authority's (FCA) investigation into discretionary commission arrangements in motor finance. The FCA found that millions of customers were potentially misled about the cost and terms of their car loans, leading to significant overcharges and mis-selling issues. As part of this investigation, Barclays Partner Finance has set aside £325 million in provisions for redress to affected customers. This provision highlights the scale of the financial impact on those who took out motor finance agreements through dealer networks.
Who is Barclays Partner Finance? Barclays Partner Finance operates under the parent company Barclays PLC and provides financing solutions specifically tailored for car purchases through a network of dealership partnerships. By collaborating with dealerships, Barclays Partner Finance aims to offer flexible funding options directly at the point of sale. The vehicle types they finance are primarily cars, making it easier for customers to secure loans without leaving their local dealership.
What Happened? The FCA launched an investigation into discretionary commission arrangements in motor finance, focusing on how lenders compensated dealerships for recommending certain financial products to customers. It was found that these practices led to higher interest rates and additional fees for consumers than they would have received from other financing options or direct bank loans. The investigation uncovered widespread overcharging across the industry during a specific period.
How Many People Are Affected? The FCA's findings indicate that 12.1 million eligible agreements (FCA, March 2026) potentially affected by mis-selling issues between April 6, 2007, and November 1, 2024. These agreements are estimated to have resulted in an overcharge of £7.5 billion across the industry (FCA estimate). On average, each customer could be eligible for around £829 in redress based on the FCA's calculations (FCA estimate).
How to Complain to Barclays Partner Finance Directly If you believe that your motor finance agreement with Barclays Partner Finance was mis-sold or overcharged, you can complain directly to them without needing a claims management company. The process is straightforward and free of charge. To initiate the complaint, visit Barclays' complaints page at https://www.barclays.co.uk/help/complaints/. Alternatively, you can contact them via phone at 0800 282 390 or by post to Barclays, Leicester, LE87 2BB.
You do not need a claims management company. You can complain to Barclays Partner Finance directly for free using the contact details provided above. Their team will guide you through the necessary steps and gather any additional information required to address your concerns effectively.
What to Do Next After identifying that you may have been affected by motor finance mis-selling, it is crucial to take the following steps:
- Gather Documentation: Collect all relevant documents related to your car loan agreement with Barclays Partner Finance. This includes contracts, correspondence, payment records, and any evidence of additional fees or charges.
- Check Agreement Dates: Ensure that your motor finance agreement falls within the period specified by the FCA investigation (April 6, 2007, to November 1, 2024). If it does, you are likely eligible for redress.
- Submit a Complaint: Use the information provided above to submit your complaint directly to Barclays Partner Finance. Be thorough in detailing any concerns and include all supporting documents.
Timeline Once you have submitted your complaint to Barclays Partner Finance:
- You can expect an acknowledgement within three working days.
- A full response should be received within eight weeks, although it may take longer for complex cases.
- If you are unsatisfied with the initial response or feel that your concerns have not been adequately addressed, you can escalate your case to the Financial Ombudsman Service (FOS) after eight weeks.
By following these steps and understanding your rights as a consumer, you can seek fair redress from Barclays Partner Finance directly without incurring additional costs associated with third-party claims management companies.
Latest: The FCA has confirmed the car finance compensation scheme on 30 March 2026. 12.1 million agreements are eligible, with an FCA-estimated scheme average of £829 per eligible agreement. Read the full details.
---
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.