Barclays PCP Compensation Claims

Were you overcharged on a Barclays car finance agreement? You could be entitled to compensation.

‍

Barclays has set aside £90 million to cover compensation claims linked to car finance mis-selling. If you took out a Barclays PCP or Barclays Partner Finance agreement and commission wasn't properly disclosed at the point of sale, you may qualify for a full refund of the interest and fees you overpaid.

Why Barclays PCP Claims Are Rising

In December 2024, the High Court upheld a Financial Ombudsman Service decision requiring Barclays to compensate a customer for undisclosed commission on a car finance agreement.

The court ruled that Barclays’ use of discretionary commission arrangements (DCAs) created an unfair relationship under the Consumer Credit Act 1974. Car dealers acting as brokers were able to increase interest rates to earn higher commission, without informing customers.

In December 2024, the High Court upheld a landmark Financial Ombudsman Service decision requiring Barclays to compensate customers for undisclosed commission on car finance agreements. This ruling confirms what many consumers have suspected: Barclays allowed car dealers to increase interest rates without proper disclosure, creating an unfair relationship under the Consumer Credit Act 1974.

‍

WHAT WE COVER

We specialise in reclaiming funds from car finance agreements that may include:

HIDDEN CHARGES

Some car finance agreements include fees or commission that were not clearly explained at the point of sale. This can include undisclosed broker commission, administrative fees, or inflated costs built into the agreement. If charges were hidden or not fully explained before you signed your agreement, this may constitute mis-selling and you could be entitled to reclaim money paid. Many customers discover they paid significantly more than necessary because commission was silently added to their interest rate.

‍

EXCESSIVE INTEREST RATES

Many lenders allowed dealerships to increase interest rates to earn higher commission, often without the customer's knowledge. This resulted in consumers paying significantly more than necessary for their car finance. If your interest rate was higher than expected, not properly justified, or if the dealer had discretion to change it without your informed consent, your agreement may be considered unfair and eligible for compensation. The court's decision confirms that lenders bear responsibility for practices used by their partner brokers.

‍

Mis-sold agreements

A car finance agreement may be classed as mis-sold if key information was withheld, misleading, or not presented in a clear and transparent way. This includes situations where you were not told about the dealer's ability to adjust your rate, where the total cost of finance was obscured, or where you were pressured into a deal without time to review the terms. Our streamlined claims process makes it easy for clients to reclaim money from mis-sold car finance agreements, with minimal effort and no unnecessary delays.

‍

LATEST NEWS

Stay informed with the latest updates for affected lenders. Register your details today to receive important news, insights, and developments straight to you. Stay ahead and make informed decisions with timely updates tailored to your needs.

LENDERS WE COVER

Start Your Claim

FAQs

What is a Barclays PCP claim?

A Barclays PCP claim is a request for compensation where a Personal Contract Purchase agreement arranged by Barclays or Barclays Partner Finance involved undisclosed commission or unfair lending practices. The December 2024 High Court ruling confirmed that Barclays' use of discretionary commission arrangements (DCAs) created unfair relationships, making these agreements eligible for compensation claims.

‍

What is Barclays Partner Finance PCP?

Barclays Partner Finance PCP agreements are car finance deals arranged through dealerships acting as brokers on behalf of Barclays. Many of these agreements included discretionary commission arrangements where the dealer could increase your interest rate to earn commission without telling you. This practice is now deemed unfair under consumer protection laws.

Can I make a PCP Barclays claim if my agreement has ended?

Yes. You may still be eligible to make a Barclays PCP claim even if your agreement has finished, provided it falls within the relevant timeframe and meets mis-selling criteria. The court ruling applies to agreements dating back several years. Time limits may apply depending on when you became aware of the issue, so it is recommended to register your interest as soon as possible to protect your position.

What is undisclosed commission in a Barclays PCP agreement?

Undisclosed commission occurs when a car dealer earns commission by increasing the interest rate on your PCP agreement without telling you. You would have signed the paperwork thinking you were getting a particular interest rate, but the dealer had secretly increased it to boost their earnings. The courts have ruled this practice can create an unfair relationship under the Consumer Credit Act 1974, making you eligible for compensation.

‍

How much compensation could I receive from a Barclays PCP claim?

Compensation varies but typically includes a refund of the interest and fees you overpaid due to undisclosed commission, plus statutory interest (usually 8% per annum) and potentially additional compensation for the unfair relationship. Each claim is assessed individually based on your agreement terms and the amount of commission involved. Our claims team will provide a realistic estimate after reviewing your documents.

‍

How do I check if my Barclays PCP was mis-sold?

You should review whether commission was disclosed, whether the dealer had control over the interest rate, and whether you were informed about how your finance costs were calculated. If you don't have clear answers to these questions from your paperwork, you likely have a valid claim. Our free claim review will assess your specific circumstances and confirm your eligibility.

‍

Is there a deadline for making Barclays PCP claims?

Time limits may apply depending on when you became aware of the issue. While the Consumer Credit Act allows claims for six years from breach, if a deadline applies to the FCA redress scheme, it is recommended to register your interest as soon as possible to protect your position. Do not delay: register today to ensure you don't miss out on compensation.

‍

NEED TO TALK TO US?

Get in touch or register your interest to keep up-to-date with the latest news and developments in mis-sold agreements.