Barclays PLC (NYSE:BCS) (LSE:BARC) has seen the High Court reject its appeal over a decision by the Financial Ombudsman related to a car finance loan.
The bank said it intends to appeal the decision which ruled it unfairly added £1,300 commission to a car loan arranged in 2018.
“This challenge related to a single, specific case on which we disagreed with the Financial Ombudsman Service’s decision,” Barclays (LON:BARC) said. “We are disappointed in the court’s ruling and will be appealing.”
Car finance has become a huge headache for UK banks with Lloyds (LON:LLOY) and Close Bros facing potentially huge bills following a ruling by the Court of Appeal over whether commission payments should have been disclosed to borrowers.
Shares in Barclays fell by 0.8% while Lloyds dropped 1.1% and Close Bros 1.6% even though those two banks were not directly involved in today's ruling.