Barclays begins early motor finance payouts as FCA sets ground rules

Barclays is initiating early compensation payouts for motorists impacted by the car finance scandal. This follows the FCA introducing minimum expectations for lenders seeking early settlements. The bank will utilise the FCA redress scheme methodology, where acceptance remains optional for consumers. This move precedes an upcoming legal battle. The wider redress scheme, launched by the City watchdog, estimates an average payout of £829 per customer, with the total cost of the scheme estimated at £9billion.