Many unaware customers may have ended up out of pocket due to unfair and unexpected charges like undisclosed commissions put on their car finances. Don’t let yourself become one of them; find out if you can make a mis-sold car finance claim today.

Who Are Close Brothers Motor Finance?

Close Brothers Motor Finance is a finance company that provides motor-based loans and finance deals to individuals and businesses. Established in 1988, the company has over three decades of experience in the industry.

They offer a range of finance options to suit various circumstances, including hire purchase agreements, personal loans, and refinancing options. 

What Is a Mis-Sold Car Finance Claim?

A mis-sold car finance claim arises when a customer was not given clear or accurate information about the terms of their finance agreement. This could include how interest rates were set, whether commissions were involved, or the long-term costs of the agreement.

One common example involves Discretionary Commission Arrangements (DCAs). These allowed dealers or brokers to increase the interest rate offered to a customer, in order to earn higher commission from the lender. In many cases, this arrangement was not made clear to the customer at the time of purchase.

If this applied to your agreement, you may have paid more than necessary over the term of the contract.

Most mis-selling claims relate to Hire Purchase (HP) or Personal Contract Purchase (PCP) agreements. These allow customers to spread the cost of a vehicle over time, with the option to own the car at the end of the agreement.

Issues can arise when customers were not fully informed about key costs, such as the interest rate, final balloon payments, or additional charges. There may also be terms that were not properly explained, such as early termination fees or mileage limits.

If you believe your finance agreement was not clearly explained, or included a DCA that was not disclosed, you may have grounds to bring a claim. Compensation is not guaranteed and will depend on the specific circumstances of your case.

How Could Close Brothers Motor Finance Have Mis-Sold My Car Finance Agreement?

One way Close Brothers Motor Finance agreements may have been mis-sold is through the use of a Discretionary Commission Arrangement (DCA). This arrangement allowed brokers or dealers to adjust the interest rate offered to customers, with higher rates resulting in higher commission payments. In many cases, these arrangements were not clearly disclosed, meaning customers may have paid more without knowing why.

If you took out a Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement before January 2021, and the commission structure was not properly explained, you may have been mis-sold your finance agreement.

This practice may have created a conflict of interest, as brokers were incentivised to offer deals that benefited them financially, rather than what was best for the customer. If you believe you were not clearly informed about how your interest rate was set, or the commission paid to a broker or dealer, you may be eligible to make a claim.

How Much Can I Receive for a Close Brothers Motor Finance PCP Claim?

If your PCP agreement involved a mis-sold DCA, compensation may be based on the difference between the interest rate you were charged and the rate you could reasonably have received if no commission was involved.

The Financial Conduct Authority (FCA) is currently consulting on how compensation should be calculated. Most payments are expected to be under £950 per agreement, but the final amount will depend on the size of the loan, the interest charged, and how long the agreement lasted.

If a settlement is offered, it’s important to consider whether it reflects the full extent of the additional costs you may have paid.

How Can I Start My Car Finance Claim against Close Brothers Motor Finance?

If you believe your car finance agreement included a DCA that was not properly disclosed, you can start your claim now.

You don’t need to gather all paperwork before checking your eligibility. With just a few details, we can help identify whether your agreement is likely to qualify under the FCA’s proposed redress scheme.

Claims are handled by a panel of SRA-regulated solicitors on a no win, no fee basis. You also have the right to raise your complaint directly with the lender or the Financial Ombudsman Service.