Close Brothers Finance Claim
No Win, No Fee Claims
If you’re a UK resident and took out a Close Brothers motor finance agreement or Personal Contract Purchase loan, known as PCP, before January 28, 2021, to buy a new or used car, then you may be entitled to claim PCP compensation if your car dealer didn’t tell you about a discretionary commission arrangement (DCA) when you signed your agreement.
PCP is the most popular form of car finance agreement, and thousands of UK motorists have used it to buy a new or used vehicle. DCAs meant that vehicle finance was subject to higher interest charges – essentially, motorists were paying lenders more money than they needed to. Unsurprisingly, there have been a growing number of complaints by affected customers now that the Financial Conduct Authority has started investigating these agreements, including hire purchase (HP). Financial difficulties could have been caused by deals like the ones Close Brothers had, and that financial hardship deserves to be compensated.
Close Brothers Motor Finance is just one of several third-party finance providers under scrutiny.
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Why Choose PCP Claims UK
We will put you in touch with the UK’s top PCP compensation claims handlers to help you recover compensation for higher interest rates and inflated monthly repayments from dealers and brokers who didn’t give you all the facts at the start of your car agreement. It’s strictly no win, no fee, and it’s completely free to check.
- Claim £1000s – Receive compensation for your mis-sold PCP finance agreement.
- Work with the pros – We team you up with the UK’s leading PCP claim solicitors.
- No win, no fee – Our no win no fee basis means no financial risk to you.
- 60 second form – Fill in our form to find out if you have a claim.
- Zero risk – We only share your data with solicitors if you’ll qualify.
The Landmark Court Ruling That Changed The Face Of PCP Claims
Close Brothers has stopped underwriting new dealer finance as its share prices drop following a ruling by the Court of Appeal on October 25, 2024. Three consumers engaged in legal battles with Close Brothers and Firstrand Bank received a ruling in their favour.
The judges ruled in favour of the claimants, stating that a broker could not lawfully receive a commission from a lender without obtaining the customer’s fully informed consent to the payment and that credit brokers have a fiduciary duty to their customers. It means all three cases are now set for a retrial.
In response to the judgement in the ‘Hopcraft’ case, Close Brothers contacted car dealers to inform them that they would pause any new UK motor finance business. They have described this as a ‘temporary’ measure whilst ‘we review any relevant changes to our documentation and processes to ensure compliance with these new requirements’.
Close Brothers has stated in its response that the court has ‘determined that motor dealers acting as credit brokers owe both a disinterested duty and a duty of loyalty (fiduciary duty) to their customers. This sets a higher bar for the disclosure of and consent to the existence, nature, and quantum of any commission paid than that required by current FCA rules, or regulatory requirements in force at the time of the case in question.’
However, the firm also said it disagreed with the Court of Appeal’s decision and is now planning to challenge the ruling in the UK Supreme Court.
The FCA has extended its response time from September 2024 until May 2025. One of the factors for this was to hear the outcome of these three appeal cases. A lender receiving a complaint and a request for a refund does not have to provide a final response until December 2025; the FCA recently extended this deadline, too.
Even though finance providers do not have to formally respond to your complaint, if you had a PCP agreement taken out before 28 January 2021, you should still register your car finance claim now.
How Much Compensation Could I Get For A Close Brothers Finance Claim?
One reason for the long FCA investigation is to independently review motor finance in the round and devise a fair and consistent compensation scheme for customers who have been mis-sold car finance.
It is likely that Close Brothers Motor Finance may have to pay compensation on submitted claims with a figure which represents the difference between the actual interest rate on the original loan and a lower rate, effectively to repay money that the customer should never have been charged on their monthly payments. The exact formula for this is one of the elements of the FCA investigation.
Industry experts predict the average settlement could be £1,100, but some people will be eligible for much higher payments if they have multiple loans or high-value vehicles, depending on the financial situation they found themselves in.
Why Use Us?
- Fast results – We work with only the best PCP claim solicitors in the country, who all prioritise your time and compensation above all else.
- No upfront risk – You don’t pay a penny for legal services unless you win, and only then will a small % of your compensation be deducted for their work.
- Industry leaders – When you work with us, you work with claim experts who have connections to leading PCP claim solicitors.
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Close Brothers Claims FAQs
Our most common PCP claim questions about Close Brothers Finance mis-selling are answered for you below.
Using a claims management company is a stress-free way to progress a claim in what is a new and unfolding scandal. You just provide all your details and the necessary information, and they will assess your claim to make sure you are eligible and support you every step of the way. Most claims management companies don't charge fees but take a percentage of any compensation to cover their costs.