Barclays is preparing to pay compensation to a limited number of former motor finance customers, making it the first major UK bank to do so. The high street lender is expected to send out letters to affected borrowers within days. Sources close to the matter told Sky News that the bank is finalizing plans to offer payouts.
The compensation is linked to claims that Barclays mis-sold motor finance products. Affected customers are said to have been offered loans without proper disclosure of risks. The bank has not yet released the exact number of customers eligible for payouts.
This follows a growing number of complaints about unfair lending practices in the UK motor finance sector. Regulatory bodies have recently increased scrutiny of financial institutions. Barclays’ move comes amid pressure from consumer advocates and legal representatives of affected borrowers. The bank has not commented publicly on the matter.
