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Close Brothers Motor Finance: Your Complete Claims Guide

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Close Brothers Motor Finance: Your Complete Claims Guide

Close Brothers Motor Finance was at the centre of the landmark court rulings that reshaped the UK motor finance landscape. The Hopcraft v Close Brothers case was one of three cases decided by the Court of Appeal in October 2024, and the subsequent Supreme Court ruling in [2025] UKSC 33 confirmed Close Brothers' liability for undisclosed discretionary commission arrangements. MotorRedress (www.motorredress.co.uk) provides this detailed guide to making a Close Brothers claim.

Who Is Close Brothers Motor Finance?

Close Brothers Motor Finance Limited is a subsidiary of Close Brothers Group plc, a specialist financial services group listed on the London Stock Exchange. It provides motor finance exclusively through car dealers — it has no direct-to-consumer lending channel — which makes it entirely dependent on the dealer network for new business.

The company finances both new and used vehicles across all mainstream brands, with a particularly strong presence in the used car market and among independent dealer networks (as opposed to franchise dealers, which are more commonly served by captive finance arms like VWFS or BMW Financial Services).

Key facts:

  • FCA authorisation number: 714230
  • Parent company: Close Brothers Group plc (CBG on the London Stock Exchange)
  • Registered address: Wimbledon Bridge House, 1 Hartfield Road, Wimbledon, SW19 3RU

Close Brothers' Provisions and Financial Position

The scale of Close Brothers' DCA liability is particularly significant relative to the company's size. Unlike Lloyds Banking Group — which could absorb a £4.5 billion provision across a vast balance sheet — Close Brothers Group is a mid-sized specialist lender for which motor finance DCA redress represents an existential financial challenge.

Key developments:

  • November 2023: Close Brothers suspended its dividend, citing motor finance conduct uncertainty
  • 2024: The company set aside approximately £400 million in provisions for DCA-related redress
  • October 2024: The Court of Appeal's Hopcraft v Close Brothers ruling confirmed liability
  • 2025: Close Brothers entered into discussions with regulators and investors about capital adequacy

The financial pressure on Close Brothers is relevant for claimants: it means the company has strong incentives to settle claims expeditiously once the redress scheme opens, rather than contesting individual claims — which would be more costly.

The Hopcraft v Close Brothers Case

Mr Hopcraft financed a Volkswagen through a dealer using a Close Brothers finance product. The DCA structure meant the dealer received a higher commission for setting a higher interest rate. No disclosure of this arrangement was made to Mr Hopcraft.

The Court of Appeal found that:

  1. Close Brothers' standard documentation did not disclose the DCA adequately
  2. The dealer, as credit broker, owed Mr Hopcraft a fiduciary duty in relation to the credit arrangement
  3. Receiving the DCA commission without fully informed consent was a breach of that duty
  4. Mr Hopcraft was entitled to disgorgement of the commission plus compensation for excess interest

The Supreme Court in [2025] UKSC 33 upheld this analysis, cementing Close Brothers' liability.

How to Identify a Close Brothers Agreement

On your documentation, look for:

  • "Close Brothers Motor Finance Limited" as the creditor
  • "CBMF" reference codes
  • A sort code and account number for direct debits that begins with Close Brothers' banking details

Bank statement references:

  • "CLOSE BROTHERS MF"
  • "CBMF"
  • "CLOSE BROTHERS"

Common dealer types:
Close Brothers tends to be the finance provider for independent dealers, multi-brand used car specialists, and some smaller regional franchise groups. If you bought a used car from a non-franchise dealer and were offered finance on the premises, Close Brothers is a common provider.

Step 1: Submit a Subject Access Request

SAR contact details:

  • Email: dataprotection@closebrothers.com
  • Post: Data Protection Officer, Close Brothers Motor Finance, Wimbledon Bridge House, 1 Hartfield Road, Wimbledon, SW19 3RU

In your SAR, request:

  • All personal data relating to any motor finance agreements
  • Original agreement documentation
  • Details of any commission paid to the introducing dealer
  • Confirmation of whether the agreement was subject to a DCA

Close Brothers must respond within 30 calendar days. Given the volume of SARs being processed, allow for the full period.

Step 2: Registering Your Formal Complaint

Complaint channels:

Complaint letter template:

"I am writing to register a formal complaint in connection with a motor finance agreement arranged through Close Brothers Motor Finance. I believe that a discretionary commission arrangement was in place between Close Brothers and the dealer that introduced my agreement.

This DCA was not disclosed to me as required by CONC 4.5, and the failure to obtain my fully informed consent constitutes a breach of duty as established in [2025] UKSC 33.

I am seeking full redress including disgorgement of commission, compensation for excess interest, and 8% simple restitutionary interest, in accordance with the FCA's consultation CP25/27.

My agreement details: [vehicle, approximate date, any reference numbers]"

Step 3: The Pause Period

Close Brothers, like all lenders, is subject to the FCA's complaint handling pause (extended to at least December 2025). During the pause, Close Brothers will acknowledge but not resolve DCA complaints. This is expected and does not affect your claim.

Close Brothers' Specific Redress Considerations

Used Car Focus

Close Brothers' portfolio skews toward used car finance. Used car agreements often involved:

  • Higher dealer commission margins (used car dealers typically have more pricing flexibility than franchise dealers)
  • Wider interest rate ranges under DCA structures
  • Less standardised credit assessment, potentially leading to larger rate differentials

This means Close Brothers claimants in the used car segment may see above-average interest rate differentials, potentially pushing individual claim values above the FCA's £700 average.

Smaller Balance Agreements

Conversely, many Close Brothers agreements were for lower-value used vehicles (£4,000–10,000). Smaller credit balances produce smaller absolute excess interest figures, which may offset the benefit of a high rate differential.

Financial Stability Risk

As noted above, Close Brothers Group faces material financial pressure from DCA liabilities. The FSCS (Financial Services Compensation Scheme) provides protection for eligible claims up to £85,000 in the event a firm fails — which covers virtually all individual motor finance claims. You should monitor developments in Close Brothers' financial position.

Escalation to FOS

If Close Brothers' redress offer is unsatisfactory, or if they do not respond within the required timeframe, escalate to the Financial Ombudsman Service:

Conclusion

Close Brothers Motor Finance's involvement in the landmark court cases makes its DCA liability among the most clearly established of any UK motor finance lender. If you have a Close Brothers agreement from the 2007–2021 period, you have one of the most straightforward claims in the market.

Register your Close Brothers claim at MotorRedress.

This article is for educational purposes only. Compensation amounts vary. Eligibility criteria apply.

Originally published on MotorRedress

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