Close Brothers Motor Finance, operated by Close Brothers Group plc, is one of the lenders affected by the Financial Conduct Authority's (FCA) investigation into
discretionary commission arrangements (DCAs). This investigation has significant implications for consumers who entered into car finance agreements with Close Brothers Motor Finance between 6 April 2007 and 1 November 2024.
Who is Close Brothers Motor Finance?
Close Brothers Group plc operates through its subsidiary, Close Brothers Motor Finance, which provides specialist motor finance solutions tailored to the automotive industry. The company caters predominantly to independent dealers across the UK, offering financing options for a wide range of vehicles including cars, vans, and motorcycles. Unlike some larger financial institutions, Close Brothers Motor Finance primarily operates through a network of dealership partners rather than direct consumer sales.
How did Close Brothers Motor Finance use Discretionary Commission Arrangements?
Discretionary commission arrangements (DCAs) were used by lenders like Close Brothers Motor Finance to pay dealerships commissions based on the interest rates set for customers' car finance agreements. This meant that dealers had an incentive to recommend higher interest rates, potentially leading to overcharging customers and reducing their ability to shop around for better deals.
In the context of Close Brothers Motor Finance, dealers using this lender could adjust the interest rate offered to consumers in a way that benefited them financially through these DCAs. The FCA investigation uncovered that such practices may have led to unfair treatment of car finance customers during the period from 6 April 2007 to 1 November 2024.
How Many Close Brothers Motor Finance Customers Are Affected?
The impact of DCAs on consumers is significant, with an estimated 12.1 million eligible agreements (FCA, March 2026) industry-wide (FCA estimate). The total amount owed in compensation across the UK car finance market is around £7.5 billion (FCA estimate), averaging approximately £829 per customer (FCA estimate). Given Close Brothers Motor Finance's size and prominence within the independent dealer network, it is likely that a substantial number of their customers are among those affected by these practices.
How to Check Your Agreement Car finance agreements affected by DCAs were typically personal contract purchase (PCP) plans or hire purchase (HP) contracts entered into between 6 April 2007 and 1 November 2024.
You can find information about your agreement number in several places:
- Your loan agreement document
- Statements and correspondence from Close Brothers Motor Finance
- The lender's online portal, if you have access to it
If your agreement falls within the specified period and is one of the affected types (PCP or HP), there is a possibility that you were overcharged due to DCAs.
How to Complain to Close Brothers Motor Finance Directly for Free
You can complain to Close Brothers Motor Finance directly for free without needing to involve a
claims management company. The process involves submitting your complaint in writing, detailing the issues and providing any relevant documentation such as loan agreements or correspondence with the lender.
Close Brothers Motor Finance should acknowledge receipt of your complaint within 3 working days and respond fully within 8 weeks. If you do not receive a satisfactory response from Close Brothers Motor Finance after this period, you have the right to escalate your complaint to the
Financial Ombudsman Service (
FOS) for free without having to engage any third-party claims management company.
What Compensation Could Close Brothers Motor Finance Customers Receive?
The compensation amounts vary based on individual circumstances and the specifics of each case. The FCA has estimated an FCA-estimated scheme average of £829 per eligible agreement per affected customer across all lenders, including Close Brothers Motor Finance (FCA estimate). However, actual compensation can range widely depending on factors such as the length of the agreement, interest rate discrepancies, and other relevant details.
Close Brothers Motor Finance will need to review your case individually to determine the appropriate amount of compensation. This process involves assessing your agreement terms and comparing them against industry standards at the time of the loan origination.
Escalating a Close Brothers Motor Finance Complaint to the Financial Ombudsman
If you are dissatisfied with Close Brothers Motor Finance's response or if they fail to resolve your complaint within 8 weeks, you can escalate it to the Financial Ombudsman Service (FOS). The FOS provides an independent review of financial disputes and offers a free service for consumers.
To escalate your case:
1. Submit your complaint to Close Brothers Motor Finance first.
2. If unresolved after 8 weeks, complete the FOS online form or request a paper application from them.
3. Provide all relevant documentation and evidence supporting your claim.
The FOS will review your case within a set timeframe and provide a final decision that is binding on both you and Close Brothers Motor Finance.
Close Brothers Motor Finance and the FCA Redress Scheme
Close Brothers Motor Finance has publicly acknowledged the impact of DCAs on their customers and is participating in the industry-wide FCA redress scheme. The lender has set aside provisions to cover potential compensation claims from affected customers, reflecting a commitment to address past issues fairly.
The timeline for receiving compensation through this scheme can vary depending on individual cases and the overall volume of complaints received by Close Brothers Motor Finance. However, consumers are encouraged to act promptly in submitting their complaints directly or through the FOS process.
Sources and References
- Financial Conduct Authority (FCA). "FCA redress scheme for car finance customers affected by DCAs." 2024.
- ONS Census 2021. "Population of the UK."
- Close Brothers Group plc Annual Report and Accounts 2023/2024.
By following these steps, you can ensure that your rights as a Close Brothers Motor Finance customer are protected and that any potential overcharging is addressed appropriately.
Key FCA Figures
The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.
You can complain to your lender directly for free. You do not need a claims management company.
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MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.