:STATS [links:https://www.bbc.co.uk/news/articles/cqrky5nxxn4po]
[icon:DOLLAR] Average payout per mis-sold agreement | £829
[icon:DOLLAR] Barclays' provision for mis-selling | £430m
[icon:CHART] Total industry compensation estimate | up to £9.1bn
[icon:USERS] Car loans covered by the FCA scheme | ~12 million
[icon:CLOCK] Mis-selling period | Apr 2007 to Nov 2024
[icon:TRENDING_DOWN] Barclays share of affected loans | not yet disclosed

:TABLE [title:Accept early or wait? Your two options, links:https://www.theguardian.com/business/2026/nov/03/car-finance-barclays-bank-offer-payouts-loans]
Option | What you get | Risk | When
Accept Barclays' early offer | Money before Christmas 2026; uses FCA model; Barclays won't claw back if outcome is lower | Waive right to sue for more; forfeit any upside if scheme pays out higher later | This month
Wait for FCA scheme | Could receive more if legal challenge fails and scheme is upheld | Could receive less or nothing if scheme overturned; payment delayed to 2027 or 2028 | 2027 at earliest

:INFO [links:https://www.bbc.co.uk/news/articles/c2l9vvj097lo]
What is the car finance mis-selling scandal?
Between April 2007 and November 2024 many car dealers were paid discretionary
commissions by lenders such as Barclays Partner Finance, Black Horse (Lloyds),
Close Brothers and MotoNovo. The dealer could set the interest rate the buyer
paid — and earn a higher commission by pushing the rate up. Customers were rarely
told this was happening. The FCA banned the practice in 2021 and launched a
review that resulted in an industry-wide compensation scheme. About 12 million
of the 32 million car finance agreements made during the period are affected
— roughly 37%. Average over-charge is estimated at £829 per agreement. The
total cost to the industry, including admin, could reach £9.1 billion.

:CHECKLIST [links:https://www.fca.org.uk/consumers/car-finance-discretionary-commission]
Am I eligible and what should I do?
[x] You took out a car, van or motorbike loan between April 2007 and November 2024
[x] You financed through a Barclays Partner Finance agreement
[ ] Wait: Barclays will contact affected customers directly over the next two weeks
[ ] Read the offer carefully — it will show how the £829 average was calculated for your deal
[ ] You have one month to accept or decline once you receive the offer
[ ] If you decline: you can still wait for the FCA scheme (hearing February 2027)
[ ] If you are with another lender: do not use a claims management firm; contact the lender directly or wait for the FCA scheme

:TIMELINE [links:https://www.bbc.co.uk/news/articles/cqrky5nxxn4po]
Car finance scandal: key dates
2007-04-01 | Discretionary commission arrangements (DCAs) begin at scale
2021-01-01 | FCA bans DCAs for new agreements
2024-11-01 | Cut-off date for agreements covered by the FCA scheme
2026-06-01 | FCA publishes redress scheme rules; average payout set at £829
2026-10-01 | Legal challenge to FCA scheme filed by lenders; payouts paused
2026-11-03 | Barclays announces early settlement offers to tens of thousands
2026-12-01 | First Barclays payments expected to arrive for customers who accept
2027-02-01 | Court hearing on legal challenge to FCA scheme
2027-01-01 | FCA scheme payouts begin if legal challenge fails
2028-01-01 | Latest expected date for payouts if challenge is appealed or partly upheld

:QUOTE [links:https://www.bbc.co.uk/news/articles/cqrky5nxxn4po, quotetype:plain, subtitle:Barclays Partner Finance spokesperson]
By making these early settlement offers we are giving some customers the option
of receiving redress sooner rather than waiting for the legal challenges and any
subsequent FCA action to conclude. Each offer will be calculated using the FCA's
redress schem

:INFO [links:https://www.theguardian.com/business/2026/nov/03/car-finance-barclays-bank-offer-payouts-loans]
What other lenders are likely to do next
Barclays is the first major UK bank to break cover, but analysts expect others
to follow quickly. Black Horse (Lloyds Banking Group), Close Brothers and
MotoNovo (FirstRand) hold the largest exposures. Lloyds has set aside £1.1bn,
Close Brothers £400m. The FCA confirmed it supports lenders making early offers
as long as the amount is at least as high as what the central scheme would pay.
Observers note that early offers let banks start clearing the liability from
their balance sheets before the February 2027 court ruling. Those who receive
an offer from a lender other than Barclays should apply the same accept-or-wait
analysis — the FCA methodology applies across all participating lenders.

:NOTE
Sources. BBC Business (11:56 UTC 3 Nov 2026) and Guardian (13:34 UTC 3 Nov 2026)
confirmed Barclays' early settlement announcement. FCA scheme details, £829
average and £9.1bn estimate from FCA redress scheme rules (June 2026). Barclays
£430m provision from Barclays 2026 interim results. Other lender provisions
from published financial statements. Legal challenge hearing date from FCA
statement October 2026. Barclays Quote from BBC reporting of the spokesperson
statement, 3 November 2026. Cover:

:LINK
https://www.bbc.co.uk/news/articles/cqrky5nxxn4po
BBC: Drivers may get compensation offers before car finance saga ends

:LINK
https://www.theguardian.com/business/2026/nov/03/car-finance-barclays-bank-offer-payouts-loans
Guardian: Barclays becomes first big lender to offer payouts for mis-selling

:LINK
https://www.fca.org.uk/consumers/car-finance-discretionary-commission
FCA: Car finance and discretionary commission — what you need to know