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Close Brothers

Close Brothers has set aside £165 million to cover compensation linked to car finance mis-selling. The bank has also suspended its dividend and announced plans to raise £400 million to strengthen its balance sheet. If you took out a PCP agreement with Close Brothers, you may be entitled to compensation if the finance was not sold transparently or created an unfair relationship.

BACKGROUND

In October 2024, the UK Court of Appeal ruled in Hopcraft v Close Brothers that Close Brothers' practice of allowing brokers to increase interest rates without disclosure amounted to a breach of fiduciary duty. This landmark decision opens the door to compensation for thousands of affected customers. Close Brothers has already appealed to the UK Supreme Court, with a hearing scheduled for April 2025, but you do not need to wait for that decision - you can file claims now.

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WHAT THIS
MEANS FOR
YOU?

What This Ruling and Close Brothers' Response Mean for You:

Close Brothers brokers increased your interest rate without disclosing the commission they were earning
The court confirmed this practice breaches your fiduciary rights, making it unlawful
Close Brothers has set aside £165 million to compensate affected customers (the largest compensation fund among all affected lenders)
Close Brothers suspended its dividend and is raising £400 million to strengthen its balance sheet, showing serious financial commitment
Even if your agreement has ended, you can still make a claim
The Supreme Court appeal (April 2025) will not affect your right to claim now - register your claim immediately

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Learn About our Claims Process

WHAT WE COVER

We specialise in reclaiming funds from Close Brothers car finance agreements that involve undisclosed commission, excessive interest rates, or other unfair lending practices:

Undisclosed Broker Commission

Close Brothers brokers earned commission by increasing your interest rate without telling you. You may have signed a contract thinking you were getting a specific rate, but the broker secretly adjusted it upward to earn hidden commission. The October 2024 court ruling confirms this practice breached your fiduciary rights. You are entitled to a full refund of the commission and interest you overpaid.

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EXCESSIVE INTEREST RATES

Close Brothers allowed brokers to exercise discretion over interest rates to earn higher commissions. Many customers were charged significantly higher rates than necessary because brokers manipulated rates without proper disclosure. If your rate was higher than expected or not clearly explained, you qualify for compensation.

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Unfair Lending Practices

A Close Brothers car finance agreement may be considered mis-sold if key information was missing, misleading, or unclear when you signed. This includes situations where you were not informed about the broker's financial interest, where total costs were obscured, or where you were pressured into a deal without proper time to review. Our team will assess your specific circumstances and determine eligibility.

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SUBMIT YOUR DETAILS

Start by completing our quick and easy contact form. We’ll ask for some basic information, including:

Your name
Contact details
A brief description of your car finance agreement

This step only takes a few minutes, and it’s the first step toward reclaiming your money.

Learn About our Claims Process

WE’ll BE IN TOUCH

Once we receive your form, our team will review your details and get in touch with you as soon as possible. During this conversation, we’ll:

Confirm your information
Answer any initial questions you may have
Discuss how we’ll proceed with your claim

LEAVE THE REST TO US

After the initial consultation, we take care of everything for you. Here’s what we do:

Document Review: We’ll analyse your car finance agreement and supporting documents to identify hidden charges, excessive interest, or mis-sold terms.

Case Preparation: Our team compiles all necessary evidence to build a strong case.

Negotiation and Reclaim: We handle all communications with lenders or financial institutions to recover your money.

REGULAR UPDATES

We believe in keeping you informed. Throughout the process, we’ll provide regular updates on the progress of your claim, so you’re never left in the dark.

GET PAID

Once your claim is successful, you’ll receive your reclaimed funds directly. It’s that simple!

CLAIMS PROCESS

HOW MUCH
COMPENSATION CAN
YOU CLAIM?

Compensation for Close Brothers car finance claims typically includes:

Full refund of broker commission embedded in your interest rate
Refund of all overpaid interest resulting from the inflated rate
Statutory interest on the refunded amounts (typically 8% per annum from the date of breach)
Additional compensation for breach of fiduciary duty and any distress caused

Example:

A customer took out a £22,000 Close Brothers car finance agreement at an agreed rate of 5%. The broker secretly increased it to 8.1% to earn approximately £2,200 in commission without disclosure. Over the 4-year term, the customer paid roughly £2,400 extra in interest. Compensation would include: £2,200 commission + £2,400 overpaid interest + 8% statutory interest = approximately £4,700 total compensation.

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WHY YOU SHOULD
TRUST PCP MISSOLD?

Our team of dedicated claims managers has extensive experience handling Close Brothers and other car finance mis-selling cases. We understand the October 2024 Hopcraft v Close Brothers ruling, the legal framework, and what Close Brothers must pay. Our claims strategy is grounded in this landmark court decision, which has already prompted Close Brothers to set aside £165 million in compensation and suspend dividends.

FCA Regulated: We're authorised and regulated by the Financial Conduct Authority (FRN 1037114) to carry out claims management activities
Court-Backed Expertise: Our strategy is based on the October 2024 Hopcraft v Close Brothers Court of Appeal ruling
Close Brothers' Financial Commitment: The bank's £165m setaside, dividend suspension, and £400m fundraising demonstrate serious liability recognition
Financial Ombudsman Access: If a claim is unsuccessful, you can escalate to the Financial Ombudsman Service for free
Transparent Complaints Procedure: Full details of how we handle complaints are available on request

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LATEST NEWS

Stay informed with the latest updates for affected lenders. Register your details today to receive important news, insights, and developments straight to you. Stay ahead and make informed decisions with timely updates tailored to your needs.

LENDERS WE COVER

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FAQs

What is a Close Brothers PCP claim?

A Close Brothers PCP or car finance claim is a request for compensation where an agreement involved undisclosed broker commission, excessive interest rates, or other unfair lending practices. The October 2024 Court of Appeal ruling (Hopcraft v Close Brothers) confirmed that failing to disclose commission breaches fiduciary duty, making these agreements unfair and eligible for compensation.

What did the Hopcraft v Close Brothers ruling mean?

The October 2024 Court of Appeal ruled that Close Brothers' practice of allowing brokers to increase interest rates without disclosure breached customers' fiduciary rights. This makes the practice unlawful. Close Brothers appealed to the Supreme Court (hearing April 2025), but you do not need to wait for that outcome - you can file claims now and protection applies.

Should I wait for the Supreme Court decision (April 2025) before claiming?

No. You do not need to wait for the Supreme Court decision. The October 2024 Court of Appeal ruling is already binding and applies to your claim. Close Brothers has already set aside £165 million in recognition of liability. Registering your claim now protects your position and demonstrates your awareness of the issue. Do not delay - submit your claim immediately.

Can I make a Close Brothers PCP claim if my agreement has ended?

Yes. You may still be eligible to make a Close Brothers claim even if your agreement has finished, provided it falls within the relevant timeframe and meets mis-selling criteria. The ruling applies to agreements dating back several years. Time limits may apply depending on when you became aware of the issue, so register your interest as soon as possible to protect your position.

What is undisclosed commission in a Close Brothers agreement?

Undisclosed commission occurs when a broker earns money by increasing your interest rate without telling you. You may have agreed to a 5% rate, but the broker secretly increased it to 8.1% to earn commission from the difference. You were not informed of this practice or how it affected your total finance cost. The courts have ruled this breaches your fiduciary rights and makes you eligible for compensation.

How much compensation could I receive from a Close Brothers claim?

Compensation varies but typically includes a refund of broker commission, refund of all overpaid interest due to the inflated rate, statutory interest on refunded amounts (usually 8% per annum), and potentially additional compensation for breach of fiduciary duty. Close Brothers has set aside £165 million to cover claims. Each claim is assessed individually based on your agreement terms, the commission involved, and the duration of overpayment.

How do I check if my Close Brothers car finance was mis-sold?

Review your agreement documentation and ask yourself: Was broker commission disclosed? Did the broker have discretion over the interest rate? Were you informed about how your finance costs were calculated? If you cannot find clear answers in your paperwork, you likely have a valid claim. Our free claim review will assess your specific circumstances and confirm eligibility based on the court ruling.