Close Brothers suspends dividends due to FCA investigation into historical car finance arrangements.

Close Brothers, a major provider of motor finance, has suspended dividend payouts and warned of "significant uncertainty" regarding the outcome of a probe into the motor finance industry. The Financial Conduct Authority launched an inquiry into historical use of discretionary commission arrangements (DCAs) in car financing, which some analysts predict could resemble the payment protection insurance scandal. Close Brothers could face up to £200 million in payouts, with the industry looking at total redress of up to £16 billion.

14 months ago
15 Articles