Updated: 24 April 2026

Originally Published: 03 March 2025

How Close Brothers claims work in 2026

Close Brothers has become one of the most recognised lenders in the UK car finance scandal, particularly in cases involving commission and how agreements were structured through dealerships.

If you are asking:

• can I claim against Close Brothers Finance
• is there a Close Brothers finance refund available
• how do I start a Close Brothers claim

the answer now sits within a very different framework than it did before 2026.

The Financial Conduct Authority introduced a formal FCA car finance redress scheme on 30 March 2026 [1]. This created a consistent, industry-wide process for reviewing agreements and determining whether car finance compensation is payable.

This means your car finance claim is no longer treated as a standalone complaint. It is assessed as part of a structured review across millions of agreements.

The purpose of this guide is to explain that process clearly, step by step, and to help you understand what to expect from a Close Brothers claim in practical terms.

Step 1. Check if you can claim against Close Brothers Finance

The first step is not proving anything.

It is understanding whether your agreement may fall within scope.

A car finance claim is based on how the agreement was explained and structured, not whether the vehicle purchase itself was successful.

You may want to review your agreement if:

• commission was not clearly explained
• the interest rate may have been influenced by the dealer
• you were only shown one finance option
• the agreement was rushed or not fully explained
• the total cost of credit was unclear

These indicators are common across many mis-sold car finance cases.

You do not need to identify the exact issue.

Most people begin with a Close Brothers refund checker or a general car finance refund check to understand whether their agreement may be worth reviewing.

Types of mis-sold car finance linked to Close Brothers

Understanding the types of car finance mis-selling helps explain why your agreement may be reviewed under the FCA car finance scheme.

These categories are assessed by the lender as part of the process.

Discretionary commission arrangements

This is the most significant issue across the car finance claims market.

Under this model:

• the lender set a range of interest rates
• the dealer selected the rate offered to the customer
• higher rates could increase commission

Many customers were not told this.

Instead, the rate was often presented as fixed or based purely on credit profile.

This matters because even a small increase in interest rate can:

• raise monthly payments
• increase the total cost
• create a financial disadvantage over time

This category accounts for the majority of claims across the car finance scandal.

Undisclosed commission

In some agreements, the dealer received commission that was not clearly explained.

The FCA considers whether:

• customers understood how the dealer was being paid
• that payment structure influenced the deal
• sufficient transparency was provided

The issue is not the existence of commission.

It is whether it was properly disclosed.

Restricted lender choice

Some customers were presented with a single finance option without being told alternatives might exist.

This can affect:

• the ability to compare rates
• the perception of available options
• the final decision

The FCA assesses whether customers were given a genuine opportunity to choose.

Unclear PCP agreements

PCP claims often involve how it was sold to you.

The typical elements of a PCP are:

• monthly payments
• a final balloon payment
• options at the end of the agreement

If these were not explained to you, in particular the overall cost or final payment, this could be important to a PCP refund claim.

Step 2. Gather basic information

You do not need full documentation to begin.

Start with:

• your name and address history
• approximate agreement dates
• vehicle details
• lender name

If available, you can also include:

• copies of agreements
• payment history
• dealership communications

If documents are missing, do not delay your claim.

Under the FCA scheme, lenders are expected to review agreements using their own records.

How to find old car finance agreements

One reason people hold off claiming is that they can't locate paperwork.

If you need to find car finance agreements or you are wondering "how can I find my car finance agreements?", start with:

• bank statements with the payments
• email confirmations
• dealership paperwork
• credit reports from Experian, Equifax, or TransUnion

If you still cannot locate the agreement, a car finance refund check through a CMC or finance claims expert can often identify it using limited details.

You do not need perfect records to begin.

Step 3. Decide how you want to proceed

• writing about what was unclear
• detailing how the agreement was offered
• keeping your statement factual

You do not need to use legal terminology or complicated details.

Option 2. Use a finance claims expert or CMC

Some people choose to use a finance claims expert or claims management company.

They can help with:

• locating agreements
• completing a Close Brothers refund checker
• preparing the claim
• managing communication
• guiding next steps

What to consider

• they usually charge a fee if successful
• they do not influence eligibility
• they can simplify more complex cases

Step 4. Submit your Close Brothers claim

When you are ready, you can submit your claim.

You will be asked to provide:

• personal details
• agreement information
• a simple explanation of your complaint

You may also be asked about:

• how the interest rate was explained
• whether commission was discussed
• whether alternative lenders were offered

Once submitted:

• your claim is recorded
• your agreement is matched
• it enters the FCA review process

Step 5. How claims are assessed under the FCA scheme

The review process is now standardised.

Instead of being treated individually:

• agreements are assessed against FCA rules
• lenders review pricing, commission, and structure
• outcomes are based on defined fairness criteria

You do not need to prove mis-selling yourself.

The process is based on how the agreement was structured and recorded.

FCA scheme timelines, schemes and deadlines

The FCA scheme applies to agreements between 2007 and 2024 [2].

These are divided into two main schemes.

Scheme 1. Older agreements

• Covers 6 April 2007 to 31 March 2014
• Older agreements may take longer to process
• Records may be less accessible

Average compensation: around £734

Scheme 2. More recent agreements

• Covers 1 April 2014 to 1 November 2024
• More consistent data and documentation
• Generally processed more quickly

Average compensation: around £881

Overall average compensation

Across both schemes, the FCA estimates:

• average payout around £829 per agreement [3]

This is a guide, not a guaranteed outcome.

Key deadline to claim

• Final deadline: 31 August 2027

Claims submitted after this date may not be considered under the scheme.

Timeline for payouts 2026

There is no single payout date.

However:

• claims are expected to be processed during 2026 and 2027
• payouts 2026 are expected as reviews begin
• timing depends on claim volume and complexity

More recent agreements may move faster.

Older agreements may take longer.

Step 6. What happens if your claim is successful

If your Close Brothers finance refund is approved, compensation is based on financial difference.

This means the review considers:

• what you paid
• what a fair agreement would have looked like
• the difference between the two

Compensation may include:

• refund of excess interest
• commission-related overpayment
• interest added to refunds
• adjustments where relevant

It is not a full refund.

It is a correction of the financial outcome.

How compensation is calculated

Compensation reflects the difference between:

• actual agreement cost
• fair agreement cost

In some cases, the difference may appear small monthly but becomes more significant across the full term.

This is why outcomes vary.

Common mistakes to avoid

To keep your claim progressing:

• do not wait for complete documentation
• keep explanations clear and factual
• respond to requests promptly
• do not assume every agreement qualifies

Starting earlier gives you more control over the process.

Should you use a finance claims expert

You can manage the claim yourself.

However, some people choose a finance claims expert if:

• they cannot find agreements
• they have multiple claims
• they want structured support

They do not affect eligibility.

They help manage the process.

Frequently Asked Questions

Can I claim against Close Brothers Finance?

Yes. If your agreement is included in the FCA scheme and there is evidence of car finance mis-selling, you may be able to make a Close Brothers claim.

Is a Close Brothers refund checker the same as a claim?

No. A Close Brothers refund checker or car finance refund check is simply an initial process to check if your agreement could qualify. The full claim is processed separately.

If my agreement has ended can I still claim?

Yes. All claims are based on how the agreement was set up and explained to you at inception, not if it is still active.

Do I automatically qualify for a PCP claim?

No, every PCP claim will be judged on its own merit. Some agreements will not meet FCA standards.

How much could I claim?

There is no set amount, but average figures are at around £829. This will vary according to the agreement and the extent to which you have been financially disadvantaged.

Could a claim affect my credit rating?

No. A car finance claim will not impact on your credit history or your current financial standing.

Can I make a claim for someone else?

Yes. An executor or beneficiary may file a claim on behalf of a deceased estate with the appropriate supporting documentation.

Do I need to use a finance claims expert?

No. You can submit a claim yourself. Some people choose support for convenience or complexity.

What to do next

If you are considering a Close Brothers claim, the most important step is to understand your position.

Start with a car finance refund check.

Gather the information you have.

Then decide whether to proceed independently or with the help of a finance claims expert.

The process is now structured and consistent.

You do not need certainty to begin.

You only need to take the first step and see where your agreement stands.

_________

References:

1. The Financial Conduct Authority introduced a formal FCA car finance redress scheme on 30 March 2026 - https://www.fca.org.uk/publications/policy-statements/ps26-3-motor-finance-consumer-redress-scheme
2. The FCA scheme applies to agreements between 2007 and 2024 - https://www.fca.org.uk/publication/policy/ps26-3.pdf
3. average payout around £829 per agreement - https://www.dailymail.co.uk/money/cars/article-15691403/FCA-says-12MILLION-829-payouts-car-finance-compensation.html