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. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
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. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Close Brothers Motor Finance is a big company in the UK that helps people buy cars. Recently, many customers have been asking for refunds because they think the company wasn’t fair with their car loans. These claims are mainly about getting money back from charges that were too high or loans that people couldn’t really afford when they got them.
This issue has gotten a lot of attention, showing how important it is for companies to be fair when lending money for cars.
If you got a loan from Close Brothers, here’s what you need to know:
Discretionary Commission Arrangements were common in car finance until recently. They let 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:
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.
Unaffordable lending claims are another big part of Close Brothers finance claims. These happen when a company gives someone a loan without properly checking if they can afford to pay it back without money problems. Close Brothers, like all lenders, should check carefully before giving car loans.
Signs that your car finance from Close Brothers might have been unaffordable include:
If any of these sound familiar, you might be able to make a car finance claim. Remember, these claims aren’t just about getting money back; they also help make sure car finance companies treat everyone fairly.
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:
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.
If you think you have a reason to claim against Close Brothers, here’s what to do:
When you’re getting ready to make your claim, these things can help make your case stronger:
Because not everyone feels like they have time to manage a complaint, or because they value professional support, many people use claims management companies (CMCs) to help with their Close Brothers finance claims. Allegiant Finance Services is one example of a CMC that helps with financial claims, including those against Close Brothers. They support you throughout the whole claims process, using what they know to help you. However, remember, you can claim yourself for free without using a Claims Management Company if you prefer.
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:
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:
These changes could lead to big differences in how car finance works.
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:
When you’re thinking about getting car finance, remember to:
For more detailed information about your rights and guidance on unaffordable lending claims, check out this helpful guide.
The issue of 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:
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.
Close Brothers is supposed to carry out sufficient checks, to ensure that the finance is sustainably affordable for the customer. But the checks it carries out are not always good enough. In upholding a complaint, an ombudsman said:
‘I found that the checks were not proportionate for the reasons that our investigator already highlighted. But also, because the information provided by Miss F about her financial situation was, on the face of it, so unlikely that by itself, this information should have caused Close Brothers to dig deeper. For example, it appears that Miss F indicated that her sole monthly outgoing was for rent, as if she had no food bills or travel costs or other priority bills. This is clearly unlikely and should reasonably have caused Close Brothers to ask more questions about Miss F’s finances.
It is correct, as Close Brothers suggested that it is entitled to rely on information that is provided by a consumer, but that does not mean it does not have to apply critical analysis where the information provided is so unusual or unlikely in the circumstances that it would be prudent and proportionate to look further at it.’ https://www.financial-ombudsman.org.uk/decision/DRN4177241.pdf
Not all customers will have enough money to pay back Close Brothers on a monthly basis. And this could be because Close Brothers made an irresponsible lending decision. For example, it could be that the customer did not have the disposable income for the repayments on the finance agreement, together with maintaining usual living costs:
‘Deducting Mrs B’s expenditure from her income leaves about £600 and from that payment she would need to afford food and the £330 monthly instalments on this new agreement. That leaves £270 for food and other emergency expenses. I think that means Mrs B couldn’t afford to sustainably repay the new agreement as well as her existing commitments. I think Close Brothers would likely have found this out too if it had completed proportionate checks, it therefore didn’t act fairly by approving the finance.’ https://www.financial-ombudsman.org.uk/decision/DRN-3381017.pdf
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We realise that claiming against your lender can seem daunting. We aim to make the claiming process as simple as possible. We specialise in affordability claims. Our experienced team will communicate with the lender (and where required, the Ombudsman service) on your behalf. We use bespoke technology to ensure efficient claims handling. Throughout the process, we inform you of claim progress using a “stage process”, so you can track your progress easily. Please remember though, that you do not need to use a claims management company to make your complaint to your lender, and if your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
Pre complaint investigation and analysis
Formal unaffordable lending complaint made
Lender responds with a Final Response Letter
If appropriate resolution cannot be reached with the lender, referral to Financial Ombudsman Service.
Our success fee is due only if your lender makes a compensation payout, and is calculated on the amount of the compensation payout. We do not charge you for any part of a settlement that results in the lender reducing your outstanding balance – that is on the house!
The success fee amount is calculated using a band charging system. There are five charging bands. Each band has a maximum amount that we will charge.
Success Fee Charging Table
| Band | Compensation Payout | Percentage rate the Success Fee is calculated on (including VAT) | Maximum Success Fee in band (including VAT) |
| 1 | £1 to £1,499 | 36% | £504 |
| 2 | £1,500 to £9,999 | 33.60% | £3,000 |
| 3 | £10,000 to £24,999 | 30% | £6,000 |
| 4 | £25,000 to £49,999 | 24% | £,9000 |
| 5 | £50,000 or more | 18% | £12,000 |
Below are examples of how this would work in practice.
| Lower example | Higher example | |||
| Band | Compensation Payout | Success Fee | Compensation Payout | Success Fee |
| 1 | £100 | £36 | £1,499 | £504 |
| 2 | £1,600 | £537.60 | £9,999 | £3,000 |
| 3 | £12,000 | £3,600 | £24,999 | £6,000 |
| 4 | £30,350 | £7,284 | £49,999 | £9,000 |
| 5 | £55,000 | £9,900 | £100,000 | £12,000 |
If you want to see how much we would charge for a specific amount, please visit our online fee calculator at https://allegiant.co.uk/unaffordable-lending-claim-fees.
Please note that the examples in the tables are for illustration purposes only. They are not an estimate of the likely outcome or success fee.
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: helpdesk@allegiant-finance.co.uk; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
Allegiant Finance Services is widely regarded as a pioneer in the high cost loan claims management market.
Contactable by email, phone, or post, whichever you prefer
We will only correspond with you and keep your details secure. We’ll never sell your data.
Much more than a contact form. With our full online application process you will receive an instant automated decision on whether we can take on your claim
We are proud to have recovered over £67m for unaffordable lending claims since 2013
We’ve been claiming high cost loan refunds since 2013
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. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.
