Barclays has jacked up the amount it has set aside for the motor finance redress scheme.
It said following the publication of the UK Financial Conduct Authority’s (FCA) consultation paper on the proposed Motor Finance redress scheme it has reassessed its provision for this matter as of 30 September 2025.
Barclays and Clydesdale Financial Services has previously set aside £90m for the scheme, based on the information available at the time.
Taking account of the proposals set out in the consultation paper, Barclays has increased the provision recognised by Barclays and CFSL from £90m to £325m, it said in a statement accompanying its Q3 accounts.
in a separatematter the bank took a £110m hit from the collapse of the sub-prime lender Tricolor in the US.
Barclays ceased lending in the motor finance market in late 2019, and the estimates follow the FCA proposal that historical operations from April 2007 fall within the scope of the FCA redress scheme.
Barclays has considered the information currently available and currently considers it more likely than not that a redress scheme will be implemented.
“Barclays has used multiple separate scenarios to estimate the amount of the provision given that the proposed terms of the FCA redress scheme are subject to consultation.
“The scenarios used incorporate differing evaluations of the FCA’s current proposals and have been probability-weighted to estimate the potential redress cost and provision required.
