Close Brothers Warns of Higher Provision for Motor Finance Costs

Close Brothers Warns of Higher Provision for Motor Finance Costs

Close Brothers Group Plc said it is likely to make a “material increase” to its provision to compensate customers who were missold car loans now that the UK regulator has set out plans for the refund program.

Close Brothers shares tumble on potential impact of finance payout

Shares in Close Brothers have plunged after the lender warned that its exposure to mis-sold motor finance claims could be significantly higher

Delta forecasts clear skies ahead, Close Brothers Group sets aside more cash for motor finance compensation scheme and Pepsi continues to face challenges

Close Brothers shares plunge on new 'material' motor finance hit

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 Authority announcing on Tuesday it expects its redress programme to cost up to £11bn and cover 14.2m agreements dating back to 2007. But analysts have…