How to Claim Against Close Brothers Finance: Step-by-Step Guide

Numerous consumers have learned in recent years that they were tricked into unjust auto finance deals, often due to misleading sales practices, confusing terms, or undisclosed commissions. 

Customers who were misled regarding the actual price of their Hire Purchase (HP) or Personal Contract Purchase (PCP) have complained to one lender, Close Brothers Finance, on numerous occasions. Does this ring a bell? 

If you’ve been affected by mis-sold finance too, you may be wondering, "Is the Close Brothers claim real?" The answer is yes.

If your car finance agreement was sought out from Close Brothers, then chances are, you may have been impacted as well and are eligible for reimbursement. But then you ask – can I claim against Close Brothers Finance? Surely. This guide will help you determine the steps you should take in filing a claim to reclaim any financial loss. 

Step 1: Confirm Your Eligibility

It is vital to establish whether your finance deal was mis-sold prior to making a claim. Mis-selling can happen in various ways, and learning about key warning signs will assist you in deciding if you have a valid right to compensation. The following are some of the most prevalent signs to watch out for to assist you in this process:

Undisclosed Commissions

Any commission that was paid out to the dealer without your consent as a buyer is dubbed an illegal and unfair practice in the car financing industry. Close Brothers is among the lenders who pay out commissions to dealers, luring them to take out the finance and lending agreement at their bank. This practice has made it unfair for consumers, as dealers started prioritising their interests rather than giving their customers the best deal or offer. With the commission, it is not surprising that there was an increase in your supposed payment, and if so, then you already have a strong basis for car finance claims. 

Unfair Terms

Most of the finance agreements come with terms that can put financial pressure on their consumers. Now, if you happen to take out a PCP or HP agreement, there’s a possibility that it was mis-sold to you if:

• You were pressured into refinancing without being given clear alternative options.
• Your PCP contract included unrealistic mileage limits, resulting in expensive penalties for exceeding them.
• You were given misleading information regarding the final balloon payment, and it may have been presented to you as affordable and manageable than it was, and at the end of the contract, it will leave you in a difficult financial situation. 

Lack of Transparency

A finance agreement should be fully transparent so it would allow customers to make an informed decision. When customers aren’t fully aware of the terms of their agreement, or there are pieces of information that are withheld, then it can result in mis-sold car finance agreements. Here are some instances of mis-selling, which is brought about by the lack of transparency.  

• Interest rates that were not clearly explained or were significantly higher than expected.
• Hidden or additional fees that were not disclosed at the point of sale.
• Early settlement charges were not properly communicated, making it difficult or costly to pay off the loan ahead of schedule.

How to Verify Your Eligibility

Not yet sure if you are eligible? Here are the steps to confirm if you were mis-sold your finance agreements:

1. Review Your Finance Agreement – Locate your original contract and carefully examine its terms. Pay attention to commission disclosures, interest rates, and any additional charges.
2. Compare With Sales Discussions – Reflect on what was communicated to you at the time of signing. Were you given the full picture, or were certain aspects withheld?
3. Check Your Payment History – If your monthly payments or interest rates seem higher than expected, this could indicate that undisclosed commissions or unfair terms were involved.

Alternatively, you can also check this Close Brothers refund checker for a quick assessment. 

Step 2: Gather Documentation

If you've been mis-sold a finance agreement, getting good evidence is the most important thing to establishing that you didn't receive clear, fair, or transparent information when you signed. The stronger the supporting documentation you have, the better your case will be.

This is what you should gather to develop a good case:

1. Copy of Your Loan Agreement

Your loan agreement is the most critical piece of evidence. It outlines the main conditions of your Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement, including significant elements like:

• The interest rate applied to your loan.
• Any fees or additional charges.
• The total cost of the agreement, including monthly payments.
• Terms regarding mileage limits (for PCP agreements).
• Balloon payment details (for PCP agreements).

If you no longer have a copy of your agreement, you can request it from Close Brothers Finance or the dealer who arranged your finance.

2. Correspondence With the Dealer or Lender

Any communication you had with the lender, dealer, or broker during the sale process can be crucial in proving mis-selling. Look for:

• Emails, letters, or messages where the dealer discussed your finance options.
• Verbal agreements or promises that contradict the written terms of your contract.
• Marketing materials or finance advertisements that may have been misleading or failed to mention key terms (such as commissions).

If you were encouraged to take a specific finance deal without being informed of alternative options, this could be evidence of an unfair or pressured sale.

3. Bank Statements Showing Your Payments

Your bank statements can help demonstrate the financial impact of the mis-sold agreement. Gather records of:

• Your monthly payments to Close Brothers Finance.
• Any unexpected fees or charges applied to your account.
• Large balloon payments (for PCP) that may have been misrepresented at the time of signing.

These documents can provide evidence of the financial burden that resulted from undisclosed commissions, excessive interest charges, or unfair conditions.

4. Evidence of Financial Impact

In order to support your argument, have documents that illustrate how the mis-selling affected your finances negatively. This may involve bank statements, surprise charges, or extra expenses you did not know about

• Proof of undisclosed commissions – If your dealer received a commission that influenced your interest rate, look for any documentation that mentions commission payments (this might be buried in the fine print of your agreement).
• Higher-than-expected interest rates – If you were not informed that your interest rate was inflated due to a dealer commission, compare your rate to what was available on the market at the time.
• Penalty charges for exceeding mileage limits (PCP only) – If you were given an unrealistically low mileage cap without a proper explanation, gather any documents showing excess mileage fees.
• Pressure to refinance – If you felt pressured to refinance your deal under unclear terms, keep records of any communications that suggest you had no other choice.

Organising Your Documents

To make your Close Brothers finance claim process smoother, organise your evidence into clear sections:

• Loan Agreement – A copy of the full contract.
• Communications – This can be any conversation you had with your lender, including Emails, messages, or letters
• Financial Records – Bank statements showing payments.
• Additional Proof – Include any supporting documents highlighting the impact of mis-selling.

Step 3: File a Complaint with Close Brothers Finance

After completing the required documents, it’s time to file an official complaint. Filing a formal complaint with Close Brothers Finance is an important move since it is regulatory for financial firms to deal with consumer complaints.

To ensure a case is treated fairly, you may follow these step-by-step procedures.

1. Contact Close Brothers Finance

You can submit your complaint to Close Brothers Finance via:

• Email – Since it is much more accessible and easier to and, it ensures a faster response time and provides a digital record of your submission.
• Post – However, you can also send a formal complaint letter via recorded delivery to make sure that it is well received.
• Phone Call – While you can initially call to raise your complaint, it is always recommended to follow up in writing for documentation purposes.

Where to Send Your Complaint

To get the most up-to-date contact details, check Close Brothers Finance’s official website or look at your loan agreement.

2. What to Include in Your Complaint

Your complaint letter is crucial as it will serve as the backbone of your case. Here’s a list to make it easier for you.

A. Your Personal Information

• Full name
• Contact details (phone number, email, and postal address)

B. Details of Your Finance Agreement

• Loan agreement number (found on your contract)
• Vehicle details (make, model, registration number)
• Date of agreement

C. Explanation of How You Were Mis-Sold the Agreement

Be specific about why you believe your finance agreement was mis-sold. Common reasons include:

• Undisclosed commissions – You were not informed that the dealer/broker received a commission, which may have influenced the interest rate you were offered.
• Unfair Terms – You were bullied into refinancing, presented with unrealistic mileage restrictions (PCP), or deceived regarding the ultimate balloon payment.
• Lack of Transparency – Important information, like interest rates, early settlement charges, or extra fees, was not openly disclosed.
  

Here’s an Example Statement for Your Complaint Letter:
I am writing to officially complain about my finance agreement (Loan Number: XXXXXXXX) with Close Brothers Finance. I was not told that the dealer had a commission paid for arranging my finance, and this affected the interest rate offered to me. I was also not entirely made aware of [list any secret fees, mileage restrictions, or balloon payments that were confusing]. This failure to inform has cost me financially, and I am seeking an equitable solution, including a refund of any interest and charges that were overpaid.

D. Supporting Documents

Attach all relevant evidence to strengthen your claim:

• A copy of your loan agreement.
• Email or written communication from the dealer/lender.
• Bank statements showing payments made.
• Any other proof demonstrating financial losses or misleading terms.

E. Request for Compensation or Resolution

Clearly state what outcome you expect, such as:

• A Close Brothers finance refund of the overpaid interest.
• A recalculation of your finance agreement under fair terms.

3. Keep Records of Your Complaint

Any record of your complaint is important, so you must have copies of it, both digital and physical. 

• For a safe and traceable submission, post your hard copy letter by recorded delivery to obtain confirmation of receipt.
• Retain copies of all emails, letters, and responses from Close Brothers Finance.
• Make sure to include the date and time you called, including the name of the agent you got.  This way, if something goes wrong, you have a definite record of when
• If you do call their complaints department, be sure to put in the date and the time you called as well as the name of the agent you got. That way, if something goes wrong, you have a definite record of when you last talked.

4. Timeline for the handling of your Complaint

After you submit your complaint, Close Brothers Finance or your lender has up to eight weeks to investigate and respond. During this period, they may do either of the following:

• Accept the responsibility and offer compensation, as this makes the process quick and easy.
• Request additional information from you if they think there are missing details that support the mis-selling.
• Reject your claim with a detailed explanation.

You have the right to escalate the case if you don’t receive any response within eight weeks.

Step 4: File a complaint to the Financial Ombudsman Services (FOS)

If Close Brothers Finance refuses to accept your complaint or offers an unsatisfactory solution, you can try submitting your case to the FOS.

How to Refer Your Complaint to the Financial Ombudsman Service (FOS)

Here are the steps you should take to get your complaint processed correctly:

1. FOS Website Visit 

Go to the Financial Ombudsman Service website and fill in their online complaint form. Feel free to contact their helpline for guidance if you need any further assistance.

2. Provide all the pertinent evidence

Add supporting documentation to bolster your argument, such as:

• Your initial complaint to Close Brothers Finance
• Their reply (or failure to reply)
• Mis-selling evidence, e.g., overcharged interest or hidden charges

3. Wait for the Investigation

Once the FOS has received your complaint, they will begin their investigation, which can take a few months, depending on the standing of your case. In some cases, they also ask for more documents and information during this time, so it is best to be ready all the time in case they require more.

4. Get a Ruling and Possible Compensation

Once the investigation has been concluded, you can expect a ruling from the FOS. Should they find you in favour, you will be awarded or paid for the excess interest, unjust charge, or any other loss incurred due to the lender’s actions. The advantage of submitting your case to the FOS is knowing that there’s an impartial body that will objectively consider your complaint, which can then improve your odds for a fair decision.

Step 5. Legal or Claims Management Services

If the ruling of the FOS doesn’t provide satisfactory on your side, you may want to seek professional help. Chances are, you weren’t able to provide a thorough overview of your case and how you were mis-sold. Tapping a professional can help you better argue your case, especially if you’re submitting it to a regulatory body. 

1. Legal Advice

Car financing agreements are hefty, and there’s definitely a lot of money involved. This is why the legal side can be complex, too. Hiring a solicitor is ideal. Since their expertise is about financial mis-selling, they know better and they can: 

• Provide tailored legal advice based on your specific situation.
• Help you navigate the legal process and represent your best interests.
• Explore additional legal options, including taking the case to court if necessary.
• Negotiate with the financial institution to potentially secure a better outcome.
• Solicitors typically charge an hourly rate or a fixed fee, but some may work on a no win, no-fee basis, meaning you only pay if you win the case and receive compensation. Be sure to clarify payment terms upfront.

2. Claims Management Companies

Approaching a claims management company or agency whose expertise is handling complaints like this will favour you as they can help, especially in the nitty-gritty parts of filing a claim. However, you should consider the following factors:

• Charges: Companies levy charges for managing your case as a fixed cost or a percentage of your settlement amount. Insist on understanding their fee before acting.
• Success Fee: Most companies charge a percentage of your awarded compensation. Hence, there are also PCP claim companies that offer a no-win,no-fee, which makes you more confident to make a claim. Just make sure you understand exactly how much the claims management company will deduct and what your final payout will be.
• Check for Legitimacy - Before committing, verify that the company is regulated by the Financial Conduct Authority (FCA) and operates legally. Avoid firms with shady practices or too good to be true achievements. 

Conclusion

If you’re planning to sue Close Brothers Finance for any mis-selling that occurred during your transaction, then you should be prepared for a lengthy process. It also requires diligent record-keeping, patience, and perseverance, especially as you won’t be sure of what to expect during the process. However, there have been successful Close Brother finance claims and payouts, so you don’t have to worry. 

Tapping an experienced firm can help you organise this and collect compensation sooner. If you think you've been mis-sold car finance, don't hesitate—take action now and initiate your claim process.