Close Brothers shares plunge on new ‘material’ motor finance hit October 9, 2025 Shares in FTSE 250 lender Close Brothers sank on Thursday after the firm said it expects to increase its provisions for the motor finance scandal. The bank – which has a £9.5bn loan book with over 20 per cent car finance loans – sunk nearly ten per cent to 472.60p. It follows the Financial Conduct [...]
FCA orders lenders to pay £11bn in motor finance compensation October 7, 2025 The Financial Conduct Authority (FCA) has announced that it expects lenders to make 14.2 million payouts to individuals affected by unfair motor finance agreements, totalling around £11bn in compensation. The FCA estimates people would receive around £700 per agreement, on average. It has also been calculated that around 85 per cent of eligible consumers would [...]
Motor finance: BMW sets aside over £200m for car mis-selling September 22, 2025 BMW’s UK car finance arm has set aside over £200m to cover a potential hit from the motor finance scandal. The firm joins a batch of British lenders and motor companies, which have been forced to prepare provisions with millions of drivers eligible for compensation. In July, the Supreme Court handed City banks a lukewarm [...]
FCA hires influencers to raise awareness of motor finance compensation scheme September 12, 2025 In its attempt to stop people using claims management companies or law firms to access the motor finance compensation scheme, the City watchdog has kicked off a £1m media campaign. The Financial Conduct Authority (FCA) is launching a £1m campaign to inform people that they don’t need to use a CMC or law firm to [...]
Lloyds Bank-owned firm slumps into the red after huge profits July 15, 2025 Lex Autolease, the car leasing company owned by Lloyds Bank, has fallen into the red two years after posting a profit of more than £500m. The firm, which is headquartered in London, has reported a pre-tax loss of £10.6m for 2024, according to new accounts filed with Companies House. The total comes after the business achieved [...]
Arnold Clark counts the cost of Rachel Reeves’ tax hikes July 1, 2025 Car dealership giant Arnold Clark has revealed the tax hikes announced by Rachel Reeves in her first Budget as Chancellor will cost it an extra £30m a year. The Glasgow-headquartered group said the increase in employer’s National Insurance contributions and the rise in the National Minimum Wage will mainly be responsible for the rise. Arnold [...]
Barclays seeks to appeal Ombudsman motor finance ruling June 30, 2025 After losing a court battle in December to challenge a decision by the Ombudsman regarding motor finance, Barclays is back in court this week to appeal
Motor finance: Is Close Brothers heading for a car crash? May 22, 2025 Costs are mounting, loan books are shrinking, an existential motor finance ruling looms – is Close Brothers heading for disaster? It’s been a bruising 12 months for the lender, with its stock down over 25 per cent. Recent rallies have helped it claw back gains of over 65 per cent in the last six months [...]
Ford on the hook for £61m in motor finance scandal April 22, 2025 Ford has set aside as much as £61m as it becomes the latest company to be stung by the motor finance scandal. The American car manufacturer’s subsidiary FCE Bank made the provision for its British motor finance division in its latest accounts. The Essex-based FCE Bank said the provision reflected “estimated economic outflow” should a [...]
S&U shares slump after motor finance drags profits down April 15, 2025 Shares in specialist lender S&U dropped nearly two per cent on Tuesday after annual profits tumbled due to challenges from the motor finance scandal. Pre-tax profit for the financial year ending January 31 2025 fell to £24m, compared to £33.6m in the previous period. Impairment charges rose to £35.6m for the group, reflecting a near [...]