Income Of Any Luck
  • Politics
  • Tech News
  • Stock
  • Business
  • Editor’s Pick
BusinessEditor's Pick

Barclays launches appeal over motor finance commission ruling

by June 30, 2025
June 30, 2025
Barclays is back in court this week seeking to overturn a landmark Financial Ombudsman ruling concerning undisclosed commission payments in motor finance—a case that could open the floodgates to hundreds of millions of pounds in compensation claims.

Barclays is back in court this week seeking to overturn a landmark Financial Ombudsman ruling concerning undisclosed commission payments in motor finance—a case that could open the floodgates to hundreds of millions of pounds in compensation claims.

The appeal comes after the bank lost a High Court challenge in December, when Mr Justice Kerr dismissed its application for judicial review and ruled against Barclays on all three grounds of its case. A costs order was also made against the bank at the time.

At the heart of the dispute is a complaint made to the Financial Ombudsman Service (FOS) by a customer who purchased a second-hand Audi through Arnold Clark. The customer claimed they were not informed that their loan agreement with Clydesdale Financial Services, a subsidiary of Barclays, included a commission payment of nearly £1,600 to a credit broker.

The FOS upheld the complaint in 2021, stating that the commission was not clearly disclosed and therefore unfair under consumer credit rules. In response, Barclays sought a judicial review, fearing the ruling could set a precedent for widespread claims related to similar finance agreements made between 2010 and 2019.

Barclays has now returned to court, appealing Mr Justice Kerr’s decision. The appeal is being heard at the Court of Appeal over two days this week, with a judgment expected later in the year.

An analyst from RBC Capital Markets has estimated that the potential cost to Barclays could reach up to £250 million if the ruling leads to a wave of successful complaints and compensation payouts. The case is also being closely watched by other lenders, many of whom have offered similar commission-based finance arrangements.

The ongoing legal saga runs in parallel with an even bigger motor finance case that reached the Supreme Court in April. That separate case, concerning hidden commissions paid by car dealers and finance companies, could have even wider ramifications for the UK’s consumer credit industry. A ruling in favour of consumers could force lenders and motor dealers to pay out as much as £30 billion in compensation, according to some industry estimates.

In anticipation of potential losses, several high street banks and car finance companies have begun setting aside large financial provisions. Some lenders have temporarily suspended handling similar customer complaints pending the Supreme Court’s decision, which is expected next month.

Adding to the controversy, HM Treasury attempted to intervene in the Supreme Court case earlier this year but was rebuffed by the court in February. Government officials had raised concerns about the broader implications of a ruling against lenders, fearing it could destabilise the financial sector.

For Barclays, the latest legal challenge is part of a growing list of regulatory and reputational pressures. If the appeal is unsuccessful, it may further expose the bank—and the wider industry—to an avalanche of consumer complaints and financial liabilities tied to historic motor finance practices.

Read more:
Barclays launches appeal over motor finance commission ruling

previous post
PICTURED: Idaho Sniper Wess Roley, Who Set Fire Before Fatally Gunning Down Two Firefighters in Cold-Blooded Ambush
next post
Pullbacks & Reversals: Stocks Setting Up for Big Moves!

You may also like

DHSC accused of wasting PPE Medpro gowns as...

June 30, 2025

Is This Rally Sustainable? You Better Bet Your...

June 30, 2025

Pullbacks & Reversals: Stocks Setting Up for Big...

June 30, 2025

The Best Five Sectors, #25

June 30, 2025

Pottery Barn to launch in the UK in...

June 30, 2025

Bonuses force Jonathan Ross’ talent agency into the...

June 30, 2025

UK government confirms tighter steel import safeguards from...

June 30, 2025

Entry-level jobs slump 32% amid rise of AI...

June 30, 2025

FCA to allow millions free financial support in...

June 30, 2025

Canada shelves digital services tax to revive US...

June 30, 2025
Join The Exclusive Subscription Today And Get Premium Articles For Free


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Is This Rally Sustainable? You Better Bet Your Bullish Sweet Dollar It Is!

      June 30, 2025
    • Pullbacks & Reversals: Stocks Setting Up for Big Moves!

      June 30, 2025
    • The Best Five Sectors, #25

      June 30, 2025
    • Week Ahead: As NIFTY Breaks Out, Change Of Leadership Likely To Keep The Index Moving

      June 28, 2025
    • 3 Stock Setups for the Second Half of 2025

      June 27, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 IncomeOfAnyLuck.com All Rights Reserved.

    Income Of Any Luck
    • Politics
    • Tech News
    • Stock
    • Business
    • Editor’s Pick