Close Brothers Motor Finance, a specialist motor lender focusing on the used cars market, has been at the centre of a significant investigation by the Financial Conduct Authority (FCA). The FCA's probe into discretionary commission arrangements has led Close Brothers to set aside £300 million in provisions for redress, highlighting the widespread impact on consumers who financed their vehicles through this lender.
Who is Close Brothers Motor Finance?
Close Brothers Motor Finance is a subsidiary of the Close Brothers Group, a UK-based financial services company with a long-standing reputation in the motor finance sector. The lender offers financing solutions for various vehicle types, including cars, vans, and motorbikes. Their focus on used car markets has made them a significant player in the industry, serving thousands of consumers across the country.
What Happened
In April 2014, the FCA launched an investigation into discretionary commission arrangements within the motor finance sector. These arrangements allowed lenders to pay commissions to intermediaries based on factors such as the length and type of loan contract. Close Brothers Motor Finance was among several lenders identified by the FCA for these practices.
The investigation uncovered that many consumers were unknowingly paying higher interest rates due to these discretionary commission schemes, which were not transparently disclosed at the time of agreement signing. As a result, Close Brothers Motor Finance, along with other affected lenders, has been required to provide redress to impacted customers.
How Many People Are Affected
According to FCA estimates, over 12.1 million eligible agreements (FCA, March 2026) have been affected by these discretionary commission arrangements across the UK motor finance sector from April 6, 2007, to November 1, 2024. The total estimated redress amount is £7.5 billion (FCA estimate), with an FCA-estimated average of £829 per eligible agreement. This investigation has highlighted the widespread nature of mis-selling practices and the significant financial impact on consumers.
How to Complain to Close Brothers Motor Finance Directly
If you believe that your motor finance agreement with Close Brothers Motor Finance was affected by these discretionary commission arrangements, you can complain directly to the lender for free. Visit their dedicated complaints page at https://www.closemotorfinance.co.uk/complaints or contact them using the following details:
- Phone: 0344 811 7778
- Email: customer.relations@closebrothers.com
- Post: Close Brothers Motor Finance, Wimbledon Bridge House, 1 Hartfield Road, London SW19 3RU
you do not need a claims management company to handle your complaint. Complaining directly through Close Brothers Motor Finance's channels can streamline the process and ensure you receive fair redress.
What to Do Next
If you decide to complain to Close Brothers Motor Finance, there are several steps you should take:
- Gather Documentation: Collect all relevant documents related to your motor finance agreement, including loan agreements, payment schedules, and any correspondence with the lender.
- Check Agreement Dates: Ensure that your financing agreement falls within the period covered by the FCA investigation (April 6, 2007, to November 1, 2024).
- Submit Your Complaint: Contact Close Brothers Motor Finance using their complaint process as outlined above.
Timeline
Once you submit your complaint, Close Brothers Motor Finance should acknowledge receipt within five working days and provide a full response within eight weeks. If you do not receive a satisfactory resolution from the lender, you can escalate your complaint to the Financial Ombudsman Service (FOS) after this period.
The FOS provides an independent review of complaints against financial firms, ensuring that consumers have access to fair redress if issues are unresolved through direct communication with Close Brothers Motor Finance.
By following these steps and understanding your rights, you can effectively seek compensation for any unfair treatment by Close Brothers Motor Finance during the motor finance mis-selling period.
Latest: The FCA has confirmed the car finance compensation scheme on 30 March 2026. 12.1 million agreements are eligible, with an FCA-estimated scheme average of £829 per eligible agreement. Read the full details.
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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.