Barclays
Barclays has set aside significant funds to cover potential compensation claims linked to car finance mis-selling. As of February 2025, the bank allocated £90 million to address claims relating to Barclays PCP agreements, including those arranged through brokers and dealerships. If you took out a Barclays PCP or PCP Barclays finance agreement, you may be entitled to compensation if commission was not properly disclosed at the point of sale.
BACKGROUND
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.
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.
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 or not properly justified, your agreement may be considered unfair and eligible for compensation.
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.
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.
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