Close Brothers nearly doubles car finance redress to £300mn

Specialist UK bank Close Brothers has nearly doubled the amount it has set aside to cover payouts from the car finance mis-selling scandal to £300mn, following a ruling from the UK financial regulator.

Close Brothers said on Tuesday that it expected to take an additional charge of £135mn, in addition to an initial provision of £165mn.

It noted that the final cost could be “materially higher or lower depending on the outcome of the consultation and any further legal, regulatory or industry developments ”.

The extra provision followed a ruling from the Financial Authority Conduct last week that the mis-selling scandal would cost banks a total of £11bn.

The projected compensation was reduced by a Supreme Court decision to Преобръщане на огромна част от по -ранното решение на Апелативния съд, заплашил да седват кредитори с разноски за обезщетение до 44 милиарда английски лири.

Братя Братя обявиха, че увеличената наредба отразява „ по -голямата възможност “, както и „ по -възможността за отплата “, в сравнение с се чака. the regulator’s methodology, and said it “does not believe the redress methodology proposed by the FCA appropriately reflects actual customer loss or achieves a proportionate outcome ”.

The scandal stems from commissions paid by lenders to motor dealerships as part of millions of vehicle sales over many years, which the regulator and courts have said provided an incentive for higher interest rates and were insufficiently disclosed to Потребители.

В понеделник Lloyds Banking Group съобщи, че се приготвя за съвсем 2 милиарда Паунда от абсурда.