Close Brothers raises redress estimate to £300M over disputed car loan compensation claims.

Close Brothers has nearly doubled its expected redress cost for mis-sold car loans to £300 million, citing uncertainty over claims involving discretionary commission arrangements. The increase follows the FCA’s proposal to compensate around 14 million customers affected by unfair deals between 2007 and 2024, with an average payout of £700. The total industry cost could reach £11 billion. While Close Brothers supports fair redress, it disputes the FCA’s methodology, arguing it overestimates losses and conflicts with a Supreme Court ruling. The bank’s shares fell 3% after the announcement.