Updated: 29 August 2025

Originally Published: 03 March 2025

Numerous consumers have learned in recent years that they were tricked into unjust auto finance deals, often due to misleading sales practices, confusing terms, or undisclosed commissions. 

Customers who were misled regarding the actual price of their Hire Purchase (HP) or Personal Contract Purchase (PCP) have complained to one lender, Close Brothers Finance, on numerous occasions. Does this ring a bell? 

If you’ve been affected by mis-sold finance too, you may be wondering, "Is the Close Brothers claim real?" The answer is yes.

If your car finance agreement was sought out from Close Brothers, then chances are, you may have been impacted as well and are eligible for reimbursement. But then you ask: can I claim against Close Brothers Finance? Surely. This guide will help you determine the steps you should take in filing a claim to reclaim any financial loss. 

Step 1: Confirm Your Eligibility

It is important to ensure that your finance deal was mis-sold before lodging a claim. Mis-selling can occur in numerous ways, and knowing about some of the main red flags will help you determine whether you have the right to compensation. Here are some of the most common red flags to look out for to help you:

Undisclosed Commissions

Any commission that was paid out to the dealer without your consent as a buyer is dubbed an illegal and unfair practice in the car financing industry. Close Brothers is among the lenders who paid out commissions to dealers, luring them to take out the finance and lending agreement at their bank. This practice has made it unfair for consumers, as dealers started prioritising their interests rather than giving their customers the best deal or offer. With the commission, it is not surprising that there was an increase in your supposed payment, and if so, then you already have a strong basis for car finance claims. 

In August 2025, the Supreme Court decided that just because commission is paid, this does not automatically make all car finance contracts illegal. [1] If the Close Brothers broker or partner dealership added a hidden discretionary commission, or increased the interest rate to pay for the commission, it could still potentially be an “unfair relationship” under consumer credit law.

The FCA is likely to launch a formal consultation in October 2025 [2] that will set out the detail of an industry-wide redress scheme. The consultation is likely to last around 6 weeks, with the final rules not expected until early 2026. If the scheme goes ahead it will apply to all Close Brothers mis-sold car finance agreements made between 2007 and 2021.

Most complaints against Close Brothers Finance are therefore likely to remain valid, but will depend on the individual facts, and whether any undisclosed or unfair commissions were used.

Unfair Terms

Most of the finance agreements come with terms that can put financial pressure on their consumers. Now, if you happen to take out a PCP or HP agreement, there’s a possibility that it was mis-sold to you if:

• You were pressured into refinancing without being given clear alternative options.
• Your PCP contract included unrealistic mileage limits, resulting in expensive penalties for exceeding them.
• You were given misleading information regarding the final balloon payment, and it may have been presented to you as affordable and manageable than it was, and at the end of the contract, it will leave you in a difficult financial situation. 

Lack of Transparency

A finance agreement should be fully transparent so it would allow customers to make an informed decision. When customers aren’t fully aware of the terms of their agreement, or there are pieces of information that are withheld, then it can result in mis-sold car finance agreements. Here are some instances of mis-selling, which is brought about by the lack of transparency.  

• Interest rates that were not clearly explained or were significantly higher than expected.
• Hidden or additional fees that were not disclosed at the point of sale.
• Early settlement charges were not properly communicated, making it difficult or costly to pay off the loan ahead of schedule.

How to Verify Your Eligibility

Not yet sure if you are eligible? Steps to follow to check if you were mis-sold your finance(s):

1. Agreement Review - Find your original contract and read the small print. Look out for commission disclosures, interest rates, and any other fees.
2. Compare With Sales Discussions – Reflect on what was communicated to you at the time of signing. Did you get all the information or were things left out?
3. Review Your Payment History – If you have been paying higher monthly amounts or your interest rate is higher than expected this could be due to undisclosed commissions or unfair terms.

Or simply use a Close Brothers refund checker for a quick check. 

Step 2: Gather Documentation

If you've been mis-sold a finance agreement, getting good evidence is the most important thing to establish that you didn't receive clear, fair, or transparent information when you signed. The stronger the supporting documentation you have, the better your case will be.

This is the evidence you should collect to build a good case:

1. Copy of Your Loan Agreement

This is the most significant evidence. This is the signed copy of agreement that outlines the key terms of your PCP or HP agreement. It must consist of important data, including:

• The interest rate charged on the loan.
• Any fees or other charges.
• The total cost of the agreement, including monthly payments.
• Terms regarding mileage limits (for PCP agreements).
• Information on balloon payments (if you have a PCP agreement).

You can request another copy of your agreement from Close Brothers Finance or the dealer who arranged your finance if you don't have one.

2. Correspondence With the Dealer or Lender

Any documents or even verbal conversations that you had with your lender, or dealer, or broker who helped to sell the loan may assist in establishing that mis-selling in fact occurred.

• Emails, letters or messages in which the dealer discussed your finance options with you.
• Verbal agreements or promises that are not included in the written terms of your contract.
• Marketing materials or finance advertisements that may have been misleading or failed to mention key terms (such as commissions).

If you were encouraged to take a specific finance deal without being informed of alternative options, this could be evidence of an unfair or pressured sale.

3. Bank Statements Showing Your Payments

Your bank statements can be used to show how much the mis-sold agreement has cost you. You will need to provide records of:

• Your monthly payments to Close Brothers Finance.
• Any unexpected fees or charges applied to your account.
• Substantial balloon payments (PCP) which may have been misrepresented to you at signing.

They can expose to you the extra cost that you have to incur because of the hidden commissions, exorbitant interest rates and/or unfavourable conditions.

4. Evidence of Financial Impact

Have documents to show that the mis-selling had a detrimental impact on your finances. This may involve bank statements, surprise charges, or extra expenses you did not know about

• Proof of undisclosed commissions – If your dealer received a commission that influenced your interest rate, look for any documentation that mentions commission payments (this might be buried in the fine print of your agreement).
• Higher-than-expected interest rates – If you were not told your interest rate was higher because the dealer was taking a commission from it, check your rate against what was available on the market at that time.
• Penalty charges over and above the mileage allowance (PCP only) - If you were allocated a mileage allowance that was absolutely unreasonable and you have had no satisfactory explanation then make sure you preserve evidence of excess mileage charges.
• Pressure to refinance – If you felt pressured to refinance your deal under unclear terms, keep records of any communications that suggest you had no other choice.

Organising Your Documents

Organising your evidence can help make your Close Brothers finance claim process as smooth as possible. You should aim to split it into the following sections:

• Loan Agreement – A copy of the full contract.
• Communications – This can be any conversation you had with your lender, including emails, messages, or letters
• Financial Records – Bank statements showing payments.
• Additional Evidence – Attach any additional documents that show the impact of mis-selling.

Step 3: File a Complaint with Close Brothers Finance

Upon completion of the necessary forms, it is time to make a formal complaint. Submitting an official complaint to Close Brothers Finance is a good step, as it is mandatory for financial firms to handle consumer complaints.

To ensure a case is treated fairly, you may follow these step-by-step procedures.

1. Contact Close Brothers Finance

You can submit your complaint to Close Brothers Finance via:

• Email – Since it is much more accessible and easier to and, it ensures a faster response time and provides a digital record of your submission.
• Post – However, you can also send a formal complaint letter via recorded delivery to make sure that it is well received.
• Phone Call – While you can initially call to raise your complaint, it is always recommended to follow up in writing for documentation purposes.

Who to Address Your Complaint To

For the most current contact information, see Close Brothers Finance’s website or your loan agreement.

2. What to Include in Your Complaint

Your written complaint letter is important as it is the basis of your case. The following checklist will help you.

A. Your Personal Information

• Full name
• Contact details (phone number, email, and postal address)

B. Details of Your Finance Agreement

• Loan agreement number (found on your contract)
• Vehicle details (make, model, registration number)
• Date of agreement

C. Reasons you believe you were Mis-Sold the Agreement

Provide an explanation as to why you think your agreement was mis-sold to you. The following are just some of the reasons:

• Undisclosed commissions – You were not informed that the dealer/broker received a commission, which may have influenced the interest rate you were offered.
• Unfair Terms – You were talked into refinancing, unrealistic mileage limitations were imposed (PCP) or you were mis-sold regarding the final balloon payment.
• Lack of Transparency – Important information, like interest rates, early settlement charges, or extra fees, was not openly disclosed.

Here’s an Example Statement for Your Complaint Letter:
I am writing to officially complain about my finance agreement (Loan Number: XXXXXXXX) with Close Brothers Finance. I was not told that the dealer had a commission paid for arranging my finance, and this affected the interest rate offered to me. I was also not entirely made aware of [list any secret fees, mileage restrictions, or balloon payments that were confusing]. This failure to inform has cost me financially, and I am seeking an equitable solution, including a refund of any interest and charges that were overpaid.

D. Supporting Documents

Attach all relevant evidence to strengthen your claim:

• A copy of your loan agreement.
• Email or written communication from the dealer/lender.
• Bank statements showing payments made.
• Any other proof demonstrating financial losses or misleading terms.

E. Request for Compensation or Resolution

Clearly state what outcome you expect, such as:

• A Close Brothers finance refund of the overpaid interest.
• A recalculation of your finance agreement under fair terms.

3. Record Keeping of your Complaint

Keep a copy of your complaint, in electronic and hard copy form. 

• For a safe and traceable submission, post your hard copy letter by recorded delivery to obtain confirmation of receipt.
• Retain copies of all emails, letters, and responses from Close Brothers Finance.
• Make sure to include the date and time you called, including the name of the agent you got.  This way, if something goes wrong, you have a definite record of when
• If you do call their complaints department, be sure to put in the date and the time you called as well as the name of the agent you got. That way, if something goes wrong, you have a definite record of when you last talked.

4. Timeline for the handling of your Complaint

After you submit your complaint, Close Brothers Finance or your lender has up to eight weeks to investigate and respond. During this period, they may do either of the following:

• Accept the responsibility and offer compensation, as this makes the process quick and easy.
• Request additional information from you if they think there are missing details that support the mis-selling.
• Reject your claim with a detailed explanation.

You have the right to escalate the case if you don’t receive any response within eight weeks. In early 2024 however, the FCA opened a review of historic car finance contracts with Close Brothers and other lenders. The FCA said it would temporarily suspend dealing with complaints [3] to "enable us to agree a fair and consistent approach to resolving consumer cases."

Step 4: Make a complaint to the Financial Ombudsman Services (FOS)

In the event that Close Brothers Finance won’t accept your complaint or are unable to offer you a suitable solution, you may attempt to have your claim accepted by the FOS.

How to Refer Your Complaint to the Financial Ombudsman Service (FOS)

Here are the steps you should take to get your complaint processed correctly:

1. FOS Website Visit 

Go to the Financial Ombudsman Service website and fill in their online complaint form. Feel free to contact their helpline for guidance if you need any further assistance.

2. Provide all the pertinent evidence

Add supporting documentation to bolster your argument, such as:

• Your initial complaint to Close Brothers Finance
• Their reply (or failure to reply)
• Mis-selling evidence, e.g., overcharged interest or hidden charges

3. Wait for the Investigation

Once the FOS has received your complaint, they will begin their investigation, which can take a few months, depending on the standing of your case. In some cases, they also ask for more documents and information during this time, so it is best to be ready all the time in case they require more.

4. Get a Ruling and Possible Compensation

Once the investigation has been concluded, you can expect a ruling from the FOS. Should they find you in favour, you will be awarded or paid for the excess interest, unjust charge, or any other loss incurred due to the lender’s actions. The advantage of submitting your case to the FOS is knowing that there’s an impartial body that will objectively consider your complaint, which can then improve your odds for a fair decision.

Step 5. Legal or Claims Management Services

If the ruling of the FOS doesn’t provide satisfaction on your side, you may want to seek professional help from a finance claims expert. Chances are, you weren’t able to provide a thorough overview of your case and how you were mis-sold. Tapping a professional can help you better argue your case, especially if you’re submitting it to a regulatory body. 

1. Legal Advice

Car financing agreements are hefty, and there’s definitely a lot of money involved. This is why the legal side can be complex, too. Hiring a solicitor is ideal. They specialise in financial mis-selling so they know better and they can: 

• Provide tailored legal advice based on your specific situation.
• Advise you through the legal process and represent you throughout.
• Research other legal options, such as taking the case to court.
• Negotiate with the bank on your behalf to see if a better outcome can be reached.
• Lawyers tend to either charge an hourly rate or a flat fee. However some will take on a case with no win, no-fee agreements. This means that you don't have to pay unless you win the case, and even then the compensation is taken from the final payout. Payment options should be made clear from the start.

2. Claims Management Companies

Approaching a claims management company or agency whose expertise is handling complaints like this will favour you as they can help, especially in the nitty-gritty parts of filing a claim. However, you should consider the following factors:

• Charges: Companies levy charges for managing your case as a fixed cost or a percentage of your settlement amount. Insist on understanding their fee before acting.
• Success Fee: Most companies charge a percentage of your awarded compensation. Hence, there are also PCP claim companies that offer a no-win,no-fee, which makes you more confident to make a claim. Just make sure you understand exactly how much the claims management company will deduct and what your final payout will be.
• Check for Legitimacy - Before committing, verify that the company is regulated by the Financial Conduct Authority (FCA) and operates legally. Avoid firms with shady practices or too good to be true achievements. 

The value of any refund for a mis-sold Close Brothers Finance agreement will vary depending on the terms of the agreement and the terms and conditions applied. The FCA has already suggested that the average discretionary commission claim would be in the region of £950 per agreement [4].

Conclusion

If you’re planning to pursue Close Brothers Finance for any mis-selling that occurred during your transaction, then you should be prepared for a lengthy process. It also requires diligent record-keeping, patience, and perseverance, especially as you won’t be sure of what to expect during the process. 

Tapping an experienced firm can help you organise this and collect compensation sooner. If you think you've been mis-sold car finance, don't hesitate. Take action now and initiate your claim process.

FAQs 

Can I bring a claim against Close Brothers Finance?

If you think you were mis-sold a PCP car finance agreement or hire purchase agreement, you may well be able to make a claim against Close Brothers Finance, it all depends on if you have been affected by hidden or unfair commission.

How much can I claim from Close Brothers Finance?

The FCA has estimated that a typical payout for discretionary commission cases would be around £950 per agreement. However, some claims with Close Brothers Finance could be worth several thousand pounds.

Can I claim on Close Brothers Finance if my PCP has finished?

Yes, you can still make a claim against Close Brothers Finance, even if your PCP agreement has already finished. It is the initial mis-selling of the finance which is relevant, not when the agreement term ended.

What if Close Brothers Finance turned down my claim?

You can refer your complaint to the Financial Ombudsman Service if you are unhappy with the way Close Brothers Finance has dealt with your claim, or if they turn it down completely. The Ombudsman will examine your case and make a decision.

Do I need to use a professional to make a claim against Close Brothers Finance?

You can make a claim on your own, directly with Close Brothers or the Financial Ombudsman Service, but many people use a regulated claims management company to help them.

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References:

1. In August 2025, the Supreme Court decided that just because commission is paid, this does not automatically make all car finance contracts illegal - https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
2. The FCA is likely to launch a formal consultation in October 2025 - https://www.fca.org.uk/news/press-releases/fca-consult-motor-finance-compensation-scheme
3. The FCA said it would temporarily suspend dealing with complaints - https://www.fca.org.uk/news/statements/firms-given-until-december-2025-respond-motor-finance-commission-complaints
4. The FCA has already suggested that the average discretionary commission claim would be in the region of £950 per agreement - https://www.theguardian.com/business/2025/aug/04/who-will-get-car-loan-payout-how-much-regulator