Britain’s financial complaints watchdog is reported to be challenging Barclays‘ attempt to overturn a key ruling in the motor finance “mis-selling” scandal.
The Financial Ombudsman Service (FOS), which adjudicates customer complaints, is opposing Barclays’ application for a judicial review of its decision.
Go deeper with GlobalData
Barclays is currently seeking a judicial review of the FOS ruling that it treated customers unfairly regarding discretionary commission arrangements (DCAs).
This landmark decision, issued in January, initiated an ongoing investigation into the motor finance sector, significantly impacting the industry.
According to the FOS, a customer, identified as Miss L, was unaware that her payment package included a £1,600 commission to a credit broker — the dealer from whom she purchased the vehicle.
The Financial Conduct Authority (FCA) subsequently launched a market-wide inquiry into potentially unfair vehicle loan deals made before January 2021, when the regulator banned the practice.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataBarclays’ request for a judicial review would involve the High Court examining the lawfulness of the FOS decision. The watchdog is contesting this application.
Plevin and Wood: implications for motor finance regulation
Landmark case on motor finance commission begins at Court of Appeal
Regulator in Ireland cracks down on motor finance commission practices
