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Barclays to cease point of sale motor finance

Barclays Partner Finance plans to exit the motor finance market and has issued termination notices to dealer partners.

It said there has been a strategic review which has led to it shifting focus away from point of sale motor finance.

It comes as the Financial Conduct Authority is applying increasing scrutiny to the ways dealers are rewarded for motor finance sales and the regulator has made it clear to lenders that it expects them to oversee their broker partners with rigour.

Barclays said in a statement that Barclays Partner Finance, which is part of its Barclaycard division, has a vision to continue to lead the retail point of sale lending market, which it currently dominates.

It added: “After a strategic review of its motor portfolio, Barclays Partner Finance has made a commercial decision to reduce its focus on motor point of sale finance. Given this outcome, the business will no longer invest in the motor portfolio as a growth area and will shortly cease to originate new business in this segment."

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