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Barclays PLC has decided not to join the lenders challenging the UK Financial Conduct Authority’s £9 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 £7.5 billion, down from a previous estimate of £8.2 billion, with the total bill rising to £9.1 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. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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