Close Brothers restarts motor finance lending following landmark ruling Banking Close Brothers has restarted its motor finance lending practice a month after a landmark court ruling over the legality of its business. On 25 October, a court ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment, sending the entire motor finance [...]
Close Brothers warned of £640m hit if car loan scandal spreads Banking Close Brothers could take a hit to its profits worth almost double its stock market value if a brewing car loan scandal spreads to other areas of consumer finance, analysts have warned.
Motor finance industry in crisis mode after landmark court ruling Banking Motor finance providers are scrambling to avoid a full-blown market meltdown after a landmark London court ruling on "secret" car loan commissions sparked chaos across the sector.
Lloyds shares slump as analysts warn of £3.9bn motor finance bill October 28, 2024 Shares in Lloyds Banking Group and Close Brothers fell further on Monday after a landmark London court ruling that could expose motor finance providers to billions in extra compensation.
Close Brothers to sell asset management arm as motor finance bill looms September 19, 2024 Close Brothers' shares are down by around a third since the Financial Conduct Authority announced in January that it would review whether customers were overcharged via now-banned discretionary commission arrangements on car loans.
Close Brothers boss to take temporary medical leave of absence September 16, 2024 The bank said it would provide a further update "in due course". Its full year results will be announced on Thursday as planned.
Close Brothers shares jump as RBC sees ‘a number of potential catalysts’ August 29, 2024 Shares in Close Brothers jumped on Thursday after RBC upgraded its recommendation on the lender's stock, which has been dragged down by its exposure to a City watchdog review into unfair car loans.
Close Brothers shares drop as motor finance arm deals with two FCA reviews May 22, 2024 Shares in merchant banking group Close Brothers fell as much as 6.6 per cent on Wednesday morning as its motor finance business faces compensation costs tied to two market-wide reviews from the Financial Conduct Authority (FCA).
Close Brothers plans to bolster finances by £400m for FCA motor finance probe March 19, 2024 Close Brothers has outlined measures that could boost its capital position by around £400m as the merchant banking group faces potential compensation costs tied to a Financial Conduct Authority (FCA) review into historic unfair car loans.
Lloyds could face £3.5bn hit from FCA motor finance probe, analysts warn February 22, 2024 A wide-ranging review of historic motor finance commission arrangements has rocked the UK’s banking sector.