12:34 PM EST, 11/02/2026 (MT Newswires) -- Barclays (BARC.L) is preparing to offer compensation payments to a limited number of customers affected by motor finance mis-selling, ahead of the outcome of the legal challenges to the UK Financial Conduct Authority's redress scheme, Sky News reported Monday, citing sources. The British banking group reportedly plans to write to affected customers, setting out its compensation offers mostly related to so-called Johnson cases involving undisclosed contractual ties or discretionary commission arrangements. Barclays set aside 430 million pounds sterling for compensation related to the motor finance mis-selling, with sources saying customers who will receive the offers reportedly account for a small percentage of that amount. The FCA is facing legal challenges to its 9.1 billion-pound redress scheme filed by a group of car manufacturers' finance companies, including those related to Volkswagen (VOW.F, VOW3.F) and Mercedes-Benz Group (MBG.F), according to the report. Barclays told MT Newswires it has nothing to add beyond the information shared in its third-quarter results announcement. "We are considering whether to offer early redress to certain customers who have complained about the commission on their motor finance agreements. We have no additional information to share at this time," according to a Barclays Partner Finance spokesperson. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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