⚠️ Close Brothers named in landmark Hopcraft ruling — £300m provisioned — Register your claim now
Named in Hopcraft Ruling · £300m Provisioned

Close Brothers Motor Finance Claim — Check If You're Owed Compensation

Close Brothers Motor Finance was specifically named in the landmark Court of Appeal ruling on PCP mis-selling. If you had an agreement with them between 2007 and 2021, you may have a strong compensation claim.

£300m
Funds provisioned for redress
£700
Average UK compensation estimate
Oct 2024
Hopcraft Court of Appeal ruling
Free
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Key fact: The case Hopcraft v Close Brothers (Court of Appeal, October 2024) directly found that Close Brothers had paid unlawful secret commissions to car dealers — and that borrowers are entitled to reclaim those commissions. This makes Close Brothers claims especially strong.

Close Brothers Motor Finance — What You Need to Know

Close Brothers Motor Finance is the motor lending division of Close Brothers Group plc, a specialist UK merchant bank. It was one of the most active non-bank motor finance lenders in the UK, funding car purchases through independent and franchise dealerships under the Close Brothers and Forthright Finance brands.

Close Brothers occupies a uniquely significant position in the PCP mis-selling scandal because it was one of the three lenders whose conduct was specifically reviewed in the landmark Hopcraft v Close Brothers Court of Appeal judgment in October 2024. That ruling found that Close Brothers had paid "secret" or "half-secret" commissions to dealers, constituting a breach of fiduciary duty to borrowers.

Following the Hopcraft ruling and the Supreme Court's subsequent judgment in November 2024, Close Brothers temporarily suspended its UK motor finance lending operations and has provisioned £300 million to cover expected compensation payments. The FCA has since confirmed that Close Brothers will be subject to the industry-wide redress scheme.

The Hopcraft Ruling — Why It Matters for Close Brothers Customers

In Hopcraft v Close Brothers Ltd [2024] EWCA Civ 1289, the Court of Appeal ruled that Close Brothers had paid undisclosed "half-secret" commission to a motor dealer without the borrower's informed consent. The court held that this created an equity of rescission — meaning borrowers could potentially have their entire interest obligation set aside. This is one of the strongest legal foundations for any motor finance claim in UK history.

⚖️
Hopcraft
Named in landmark October 2024 Court of Appeal ruling
💷
£300m
Provisions set aside for motor finance redress
🚫
Suspended
Motor finance lending suspended Oct 2024 post-ruling
📅
2007–2021
Qualifying period for DCA-related claims

Do You Qualify for a Close Brothers Claim?

You are likely eligible if:

  • Your finance agreement was with Close Brothers Motor Finance or Forthright Finance
  • The agreement ran between April 2007 and November 2021
  • Finance was arranged through a dealership (not applied for directly)
  • You were not told about any commission the dealer received
  • You are a UK resident aged 18 or over

You may not be eligible if:

  • Agreement was taken out after November 2021
  • It was a business finance agreement
  • You have already received a full settlement

Close Brothers agreements are considered high-priority given the direct court ruling. Start your free check now to secure your position.

Close Brothers Motor Finance — Frequently Asked Questions

Why is Close Brothers particularly significant in the PCP scandal?+
Close Brothers was one of the three lenders specifically named in the landmark Hopcraft v Close Brothers Court of Appeal ruling (October 2024). The court found that undisclosed commissions paid to dealers by Close Brothers were unlawful — giving affected borrowers a very strong legal basis for compensation claims. This ruling, alongside the November 2024 Supreme Court decision, underpins all PCP mis-selling claims.
What was the Hopcraft v Close Brothers case about?+
Hopcraft v Close Brothers Ltd [2024] EWCA Civ 1289 was a Court of Appeal case where the court ruled that Close Brothers had paid undisclosed commissions to car dealers — creating what lawyers call a "half-secret" commission arrangement. The court found this breached Close Brothers' duty of loyalty to borrowers and that customers were entitled to claim back the commission paid on their behalf.
Has Close Brothers Motor Finance suspended its lending?+
Yes. Following the Hopcraft ruling in October 2024, Close Brothers suspended its UK motor finance lending operations to assess its legal exposure. The company is currently fully focused on its redress obligations. This suspension does not affect your right to claim for historical agreements — Close Brothers remains liable for all qualifying past agreements.
Can I still claim if Close Brothers has suspended lending?+
Yes, absolutely. The lending suspension is about future business — it does not affect your rights relating to historical agreements. Close Brothers remains legally obligated to honour claims for mis-selling that occurred between April 2007 and November 2021, and the FCA's redress scheme will require them to compensate affected customers.

Check Your Close Brothers Claim — Named in the Hopcraft Ruling

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