25th Apr 2026 09:49
(Alliance News) - Barclays PLC has decided not to join the lenders challenging the UK Financial Conduct Authority's GBP9 billion compensation scheme for the motor finance scandal, Sky News reported on Friday.
The London-based bank joins Lloyds Banking Group PLC in deciding not to challenge the FCA's ruling, the regulator having confirmed in March that millions of motorists are in line for compensation for being mis-sold a car finance agreement between 2007 and 2024.
Firms are expected to pay out compensation totalling around GBP7.5 billion, down from a previous estimate of GBP8.2 billion, with the total bill rising to GBP9.1 billion when including the cost of running the scheme.
"Sky News has learnt that Barclays decided on Friday not to challenge the [ruling]," the outlet said.
Sky had previously reported that the Finance & Leasing Association was leaning towards challenging the FCA over the proposed scheme, and could announce its board's decision "as early as Sunday."
A group of other lenders are still preparing to take legal action against the FCA ahead of a Monday deadline.
Sky added that "Santander Consumer Finance, an arm of the Spanish banking giant, is said to still be deliberating over the issue."
Barclays closed down 1.0% at 423.70 pence per share on Friday in London.
By Emma Curzon, Alliance News reporter
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