Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.

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Close Brothers Finance Claim

Here at Allegiant, we are an FCA regulated claims management company that assists customers with refunds. Below we explain more about (a) The two main types of Close Brothers Finance Claims you can make (b) how to make a claim, using us (or doing it yourself).

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Introduction to Close Brothers Motor Finance Claims

Close Brothers Motor Finance is a major UK lender for funding car purchases. Recently, many customers have been asking for refunds because they think the company wasn’t fair with their car loans. These claims fall in to two categories

  • Unaffordable lending
  • Hidden commissions.

This page explains about Close Brother’s hidden commissions.

Understanding Discretionary Commission Arrangement (DCA) Claims

Discretionary Commission Arrangements were common in the car finance PCP and HP sale agreements. DCA arrangements saw car dealers set interest rates on loans, which often made things more expensive for customers. The Financial Conduct Authority (FCA) stopped this practice in 2021 because they thought it wasn’t fair.

If you’re thinking about making a DCA claim against Close Brothers, here’s what you should know:

  • DCAs let car dealers change interest rates to make more money
  • This often meant customers paid more than they needed to for their car finance
  • The FCA stopped DCAs in January 2021
  • If you got a loan before this date, you might be able to make a DCA claim
  • These claims are about whether the interest rates were fair

It’s important to know that unaffordable lending claims are different from DCA claims, but both can help you get money back if you were treated unfairly. DCA claims are about the fairness of the interest rate, while unaffordable lending claims are about whether you should have been given the loan in the first place.

You can start a claim with us by clicking the button below. Simply select “Car Commission Claims”, and then search for “Close Brothers”.

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The FCA’s Review of the Use of DCA in the Vehicle Finance Market

The Financial Conduct Authority (FCA), which makes rules for financial companies in the UK, is taking a close look at how car finance works. They’re doing this because lots of people have complained about how car loans are given out, including loans from Close Brothers.

Here’s what the FCA is looking at:

  • Car loans given between 2007 and 2021
  • Whether lending practices were fair and clear
  • If there are big problems in how car finance works
  • What to do to fix things, which might include giving customers refunds
  • They plan to finish looking into this by December 4, 2025
  • They might share what they’ve found and give advice before they’re finished

While this review is happening, companies like Close Brothers might take longer to answer some complaints. But you can still start a claim if you think you were treated unfairly.

Be careful of scams during this time. Always check if a company is real before letting them help with your claim, and be careful of anyone asking for money upfront.

How to Make a DCA Claim Against Close Brothers Motor Finance

If you think you have a reason to claim against Close Brothers, here’s what to do:

  1. Check if you can claim: Your car loan needs to be from before January 28, 2021
  2. Get your paperwork together: Find your loan agreement, payment history, and any letters from Close Brothers
  3. Write down your story: Explain why you think the loan wasn’t fair or why you couldn’t afford it
  4. Contact Close Brothers: You can call, email, or write a letter
  5. Wait for them to reply: They should let you know they got your claim within 5 working days
  6. Be ready to give more information: They might ask about your money situation when you got the loan
  7. Get their decision: Close Brothers will tell you what they’ve decided about your claim
  8. Think about what to do next: If you’re not happy with their decision, you can ask the Financial Ombudsman Service to look at your case

When you’re getting ready to make your claim, these things can help make your case stronger:

Using a CMC to Help with a Close Brothers Finance DCA Claim

You can make a claim for free to Close Brothers yourself. However, not everyone feels like they have time to manage a complaint, or value professional support. For this reason, many people use claims management companies (CMCs) to help with their DCA claims. Allegiant Finance Services is one example of a CMC that helps with Close Brothers Finance Commission claims. We support you throughout the whole claims process, asking the lender to provide your paperwork and managing each stage of the claim.,.

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Is the FCA Going to Order Close Brothers Finance to Provide Automatic Redress Scheme

This isnt presently clear. The FCA did initially indicate that it would be bringing in an automatic redress scheme (where Close Brothers would decide who is due compensation under direction from the FCA). Given this uncertainty, it advisable to proactively lodge a complaint.

Close Brothers Finance DCA Claim Compensation and Refunds

If your claim against Close Brothers is successful, you might get different types of compensation. How much you get and what kind of refund depends on your specific situation. You might get:

  • Money back for extra interest you paid because of unfair commission arrangements
  • Compensation if the loan caused you financial stress because you couldn’t afford it
  • Removal of bad marks on your credit report related to the loan
  • In some cases, you might not have to pay the rest of your loan
  • Extra interest on the money you get back
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The Impact of Claims on Close Brothers and the Car Finance Industry

The many finance claims against Close Brothers and other car finance companies are changing how the whole industry works in the UK. These claims aren’t just affecting individual companies; they’re changing how car finance works for everyone.

Here’s how things are changing:

  • Close Brothers and similar companies might make less money, which could change how they do business
  • Car finance deals are becoming clearer, with easier-to-understand terms for customers
  • There are stricter rules to protect customers from unfair practices
  • Car dealers are changing how they offer finance and earn money from it
  • Companies are being more careful about checking if people can afford loans
  • People might start thinking differently about how they finance their cars

These changes could lead to big differences in how car finance works.

Consumer Rights and Protection in Car Finance

Knowing your rights as a customer is really important when you’re dealing with car finance. The recent focus on Close Brothers finance claims has shown how important it is to protect customers in this area. Here are some key rights and protections you should know about:

  • You have the right to clear and easy-to-understand information about your loan terms
  • The lender must carefully check if you can afford the loan
  • You can complain if you’re not happy, and even ask the Financial Ombudsman Service to look at your case
  • You’re protected by laws like the Consumer Credit Act and rules from the FCA
  • You can pay off your loan early without unfair penalties
  • You’re protected against unfair contract terms and misleading practices

When you’re thinking about getting car finance, remember to:

  • Read and understand all the terms before you sign anything
  • Ask questions if anything isn’t clear
  • Compare offers from different lenders to make sure you’re getting a fair deal
  • Be careful of salespeople pushing you to decide quickly
  • Keep records of all your conversations and agreements with the finance company

For more detailed information about your rights and guidance on unaffordable lending claims, check out this helpful guide.

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Conclusion and Next Steps

The storm around Close Brothers finance claims is a big deal in the UK car finance world. For many car owners, this might be a chance to address unfair practices and get some money back. Here are the main things to remember:

  • Check if your loan was taken out before January 28, 2021, to see if you can make a claim
  • Gather all your paperwork related to your car finance
  • Think about using a claims management company to help you
  • Be prepared for the process to take some time, as there’s a big review happening in the industry
  • Keep an eye out for updates from the FCA and Close Brothers about how to make claims
  • Don’t wait too long, as there might be time limits on when you can make a claim

If you’re not sure what to do next or need more information, this resource on unaffordable lending claims can help. Remember, making a claim isn’t just about getting money back; it’s about standing up for your rights as a customer and helping make car finance fairer for everyone.

Car finance concept

 

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Claiming for Free Yourself

Good to know: We are a Claims Management Company (CMC). You do not need to use a CMC to make your complaint to your lender, bank or insurer. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.