Close Brothers Granted Permission to Appeal Motor Finance Ruling
Close Brothers, a British lender, received UK Supreme Court permission to appeal a ruling on full commission disclosure for car loans, leading to a share jump of over 12% and raising hopes of averting a potential $21 billion redress scheme.
Published on April 15, 2025
On December 11, 2024, the UK Supreme Court granted Close Brothers permission to appeal a ruling that mandates motor finance brokers to fully disclose commission details on car loans. The decision propelled the lender’s shares upward by over 12%, reflecting strong market response to the potential industry-wide implications.
The appeal comes as the Financial Conduct Authority has pushed for an expedited process, amid growing concerns that undisclosed commissions could trigger a redress scheme worth up to $21 billion. After pausing new motor finance business in October following the initial ruling, Close Brothers now faces potential forecast impacts for 2025, a challenge shared by other British lenders like Banco Santander’s UK arm and Lloyds, who have already reserved significant funds for anticipated claims.