Close Brothers shares plunge as motor finance costs mount March 18, 2025 Banking group Close Brothers plunged to a £104m loss in the first half of 2025 after the firm set aside provisions for the motor finance scandal. The lender recorded a pre-tax loss in the first half of its 2025 financial year, compared to a profit of £88.1m in the same period of 2024 due to [...]
Regulator considers redress scheme in motor finance review March 11, 2025 In a statement this morning, the Financial Conduct Authority (FCA) has outlined its next steps in its motor finance review – including an industry-wide redress scheme if the Supreme Court upholds last year’s Court of Appeal ruling. The UK’s top court is expected to hear the appeal in early April as part of the growing [...]
Motor finance complaints hit record levels March 4, 2025 The UK financial ombudsman has received a record number of complaints about motor finance loans in the most recent quarter, according to new data. On Tuesday, the Financial Ombudsman Service (FOS) said that complaints about car loan cases had surpassed credit cards as the subject with the most unresolved complaints in the financial sector. Some [...]
Close Brothers completes sale of asset management arm to Oaktree March 3, 2025 Banking group Close Brothers has completed the sale of Close Brothers Asset Management (CBAM) to global investment management firm Oaktree Capital Management. The transaction, finalised on 28 February 2025, is expected to bolster the bank’s common equity tier 1 (CET1) capital ratio by approximately 120 basis points, from 12.1 per cent to 13.3 per cent. [...]
Motor finance: Bank of Ireland sets aside £143m provision February 24, 2025 Bank of Ireland joined the UK’s biggest lenders in setting aside a lump sump for potential motor finance payouts as it posted its annual results. The bank recorded a pre-tax profit of €1.86bn (£1.5bn) for 2024, which was four per cent down on the €1.94bn (£1.6bn) reported in 2023. The bank set aside €172m (£143m) [...]
Lloyds shares jump despite profit slump February 20, 2025 Lloyds Banking Group’s shares jumped three per cent following market open, despite recording a profit hit after the firm set aside additional funds for potential motor finance payouts. The FTSE 100 lender’s pre-tax profit was down 20 per cent at £6bn, compared to £7.5bn in 2023. Analysts estimated the bank’s profit before tax at £6.5bn, [...]
Barclays puts aside £90m for motor finance scandal February 13, 2025 Barclays announced in its annual results it had set aside £90m to cover potential motor finance payouts, amidst ongoing disputes over the misconduct row. This follows the landmark Court of Appeal’s October 2024 judgment, ruling in favour of three consumers and determining that lenders were liable for paying undisclosed commission to car dealers who acted [...]
FCA extends motor finance complaint deadline December 19, 2024 The Financial Conduct Authority (FCA) has extended the time that companies have to respond to motor finance complaints following a landmark high court ruling. In an announcement today, the City watchdog said firms will have until 4 December 2025 to provide a final response to customer complaints over the use of non-discretionary commission arrangements (non-DCAs). [...]
Barclays loses legal challenge to overturn FOS motor finance ruling December 17, 2024 Barclays lost a legal challenge against the Financial Ombudsman Service (FOS) over a ruling that it unfairly paid commission to a car finance broker
S&U says Budget and motor finance scandal weighing on performance December 11, 2024 S&U said the Budget and a scandal over motor finance commissions have dragged on the specialist lender’s financial performance. Anthony Coombs, a former Conservative MP who has been S&U’s chair for the last 16 years, argued Labour’s first Budget had “curtailed the sector’s growth ambitions and cast doubt over the new government’s plans to ‘Get [...]