Close Brothers Motor Finance is one of the most significant names in the UK car finance mis-selling scandal. The company has set aside £400 million in provisions — a sum that reflects just how many customers may have been overcharged. If you had finance through Close Brothers before January 2021, here is exactly what you need to know about making a complaint and claiming compensation.
Who Is Close Brothers Motor Finance?
Close Brothers Motor Finance (CBMF) is the motor finance arm of Close Brothers Group plc, one of the UK's leading merchant banking groups. CBMF operated extensively through independent and franchise car dealers across the UK, providing PCP and HP agreements to car buyers.
Close Brothers was particularly active in the used car market, meaning many of their customers bought second-hand vehicles through independent dealers — often without realising that Close Brothers was providing the underlying finance.
Why Did Close Brothers Set Aside £400 Million?
Close Brothers, like other major motor finance lenders, operated a discretionary commission arrangement (DCA) system. Under DCAs, dealers were able to increase the interest rate on a customer's agreement — within a cap set by Close Brothers — and receive a larger commission as a result. This was never disclosed to customers.
The FCA found that DCAs created a clear conflict of interest between dealers and their customers, and banned them in January 2021. The Court of Appeal's October 2024 ruling strengthened the legal basis for compensation claims significantly. Close Brothers has provisioned £400 million to cover the expected cost of settling these claims.
Are You Eligible to Complain About Close Brothers Finance?
You are likely eligible if:
- Your finance agreement was with Close Brothers Motor Finance
- It was a PCP or HP agreement (not a lease)
- Taken out between April 2007 and January 2021
- Arranged through a car dealer (not directly with Close Brothers)
- You were a UK resident at the time
How to Make a Close Brothers Motor Finance Complaint
- Use our free eligibility checker at motorredress.co.uk — 60 seconds, no documents required
- Register before 29 July 2026 — the FCA's deadline for registering complaints
- MotorRedress submits a formal complaint and requests your agreement records from Close Brothers
- Close Brothers investigates and must respond within FCA timeframes
- Escalation if rejected — we take unresolved cases to the Financial Ombudsman or courts
- Compensation paid directly to you on a successful outcome
Start Your Close Brothers Complaint Today
Free check. No documents needed. No Win No Fee. Specialist solicitors handle your case.
Check My Eligibility FreeWhat If Close Brothers Has Already Written to You?
If you have already received a letter from Close Brothers about your complaint, you may have been told the claim is "on hold" pending the Supreme Court ruling or the FCA's formal redress scheme. This is not a rejection — it is a delay.
For broader context on the mis-selling issue, read: Car Finance Mis-Selling — Signs You Were a Victim.
How Much Compensation Could You Get?
The compensation amount depends on your agreement size and the extent to which the interest rate was inflated. For a typical Close Brothers agreement:
- Agreement value £8,000–£15,000: estimated compensation £700–£2,200
- Agreement value £15,000–£25,000: estimated compensation £1,800–£4,000
- Agreement value £25,000+: estimated compensation £3,500 or more
All estimates include 8% statutory interest on the overpaid amount from the date of the original agreement. Older agreements will have accumulated more interest. See our full guide: How Much Car Finance Compensation Can I Get?