Close Brothers, a prominent player in the car finance sector, is facing a staggering £165 million loss in the wake of the ongoing PCP scandal. This blow raises serious concerns for consumers who may have purchased these contracts, who are rightly waiting for financial compensation.
The company was involved in offering Personal Contract Purchases (PCPs) for those buying motor vehicles. However, issues related to hidden commissions have surfaced, casting doubt on their operations. Consumers are left questioning the integrity of such financing options and how they might be affected by the ongoing PCP scandal.
Following the announcement of its review of motor finance commissions in January last year, the Financial Conduct Authority (FCA) has seen a rise in inquiries and complaints, and the scope of consumers eligible for compensation for mis-sold claims is increasing constantly.
WHO ELSE IS FACING LOSSES IN THE ONGOING PCP SCANDAL?
The court of appeal declared in October 2024 that FirstRand Bank and Close Brothers violated the law by paying undisclosed commissions to car dealers. This has opened the doors for millions of drivers in the UK to be eligible for financial redress. According to experts, the scandal is projected to result in a combined cost of £44bn for lenders such as Lloyds, Santander UK, Barclays, and BMW.
DID YOU PURCHASE A CAR ON FINANCE WITH CLOSE BROTHERS? YOU MAY BE ENTITLED TO FINANCIAL COMPENSATION
Seeking compensation is crucial for consumers impacted by the car finance scandal, and many may be unaware of their rights to compensation. You can find more about PCP contracts here.
If you think you’ve been a victim of the ongoing PCP scandal, it is understandable that you would want to seek justice. At Friends Legal, our knowledgeable team will work to ensure that you receive the full compensation you deserve. Our solicitors operate on a no-win, no-fee basis, so you can rest assured that if your claim is not successful, you will not be charged.
Enter your details on our form to start your claim today.
