Close Brothers Group Ordered to Pay £170m for Mis-Sold Motor Finance
Finance Firm Fined for Misleading Customers on Vehicle Loans
Close Brothers Group Ordered to Pay £170m
Close Brothers Group has been ordered to pay £170 million in redress and fines for mis-selling motor finance to customers.
The Financial Conduct Authority (FCA) found that Close Brothers had failed to provide customers with clear and accurate information about the risks and costs of its motor finance products.
The FCA also found that Close Brothers had failed to properly assess customers’ affordability, leading to some customers taking on loans that they could not afford.
FCA Investigation
The FCA’s investigation found that Close Brothers had mis-sold motor finance products to customers between 2007 and 2015.
The FCA found that Close Brothers had failed to provide customers with clear and accurate information about the risks and costs of its motor finance products.
The FCA also found that Close Brothers had failed to properly assess customers’ affordability, leading to some customers taking on loans that they could not afford.
Close Brothers Response
Close Brothers has apologized for its conduct and has agreed to pay the £170 million redress and fines.
Close Brothers has also agreed to make changes to its motor finance business to ensure that it complies with the FCA’s rules.
The FCA’s investigation into Close Brothers is part of a wider investigation into the motor finance industry.
Wider Investigation
The FCA is investigating several other motor finance companies for similar misconduct.
The FCA’s investigation is part of a wider crackdown on mis-selling in the financial services industry.
The FCA has already fined several other financial companies for mis-selling products and services.
Lloyds Banking Group Appeal
Lloyds Banking Group has filed an appeal against a £100 million fine imposed by the FCA for mis-selling motor finance.
Lloyds Banking Group claims that the FCA’s fine is excessive and that it has already taken steps to compensate customers who were mis-sold motor finance.
The FCA’s appeal is due to be heard in court later this year.
Conclusion
The FCA’s investigation into Close Brothers is a reminder of the importance of financial companies complying with the FCA’s rules.
The FCA’s investigation is also a reminder of the importance of consumers being aware of the risks and costs of financial products before they take them out.
Consumers should always shop around for the best deal and should always read the terms and conditions of any financial product before they sign up for it.
