The Financial Conduct Authority (FCA) has estimated that 12.1 million eligible agreements were affected by the discretionary commission arrangement (DCA), leading to issues with overcharging and mis-selling. This issue is particularly significant in Wales, where an estimated 293,659 residents may have been impacted during the period from 6 April 2007 to 1 November 2024. Close Brothers Motor Finance, a major player in the UK car finance market and part of the Close Brothers Group, has set aside £300 million in provisions for motor finance redress. This article will provide an overview of the situation in Wales and guide residents on how to address any potential issues with their car finance agreements.
Close Brothers Motor Finance Finance Agreements in Wales
The impact of the DCA on car finance agreements extends across the UK, including Wales, where approximately 3% of the population may be affected. With a total population of around 3,107,500 (ONS Census 2021), this means that roughly one out of every ten households in Wales could have been involved with Close Brothers Motor Finance during the relevant period. The types of vehicles financed range from small cars to larger commercial vehicles, making it a widespread issue across various segments of the market.
According to FCA estimates (FCA, 2024), the total amount involved in these affected agreements is £7.5 billion (FCA, March 2026) (FCA, March 2026). This means that many Welsh residents who financed their cars through Close Brothers Motor Finance may have been overcharged by several hundred pounds.
How to Complain to Close Brothers Motor Finance from Wales
Residents in Wales can directly complain to Close Brothers Motor Finance for free. The process is straightforward and does not require the assistance of a claims management company. To start, individuals should visit the dedicated complaint page on Close Brothers Motor Finance's website at https://www.closemotorfinance.co.uk/complaints. Here, they will find detailed information on how to file a complaint and can also download relevant forms.
It is important for residents to know that complaining directly to Close Brothers Motor Finance is free and does not require any upfront payment or engagement with third-party claims companies. Individuals are encouraged to gather all necessary documents and follow the outlined steps to ensure their complaints are processed effectively.
What Wales Residents Should Do Next
To begin addressing potential issues with car finance agreements, residents in Wales should start by gathering relevant documentation such as loan agreements, bank statements, and any correspondence related to the financing of their vehicles. It is crucial to check the dates on these documents to confirm whether they fall within the specified period from 6 April 2007 to 1 November 2024.
Once all necessary information has been collected, residents should proceed with filing a complaint directly through Close Brothers Motor Finance's dedicated complaints process. By doing so, individuals can seek redress for any overcharges or mis-selling issues without incurring additional costs or engaging unnecessary third-party services.
Sources and References
- Financial Conduct Authority (FCA), 2024
- Office of National Statistics (ONS) Census 2021
How Many People in Wales Are Affected?
Based on Wales's population of approximately 3,100,000, an estimated 647,761 motor finance agreements in the area may have been affected by discretionary commission arrangements (FCA estimate, proportional calculation). This represents approximately 4.63% of the UK total of 12.1 million eligible agreements.
Close Brothers Motor Finance is registered at Companies House (company number 00520241) with a status of active. The company was incorporated on 1953-06-03. Its registered office is at 10 Crown Place, London, EC2A 4FT. The company currently has 9 directors.
Close Brothers Motor Finance Complaint Statistics
According to the Financial Ombudsman Service, Close Brothers Motor Finance received 10 total complaints in H2 2024 BUSINESS. You can check the latest complaint data at the Financial Ombudsman Service.
Close Brothers Motor Finance's FCA reference number is 931092 (status: Appointed representative - introducer).