Close Consumer Finance Limited Discretionary Commission

ThriftyBrit

I financed my car through Close Consumer Finance Limited, which rebranded to Close Motor Finance Limited in November 2002. The company was dissolved on 18 July 2023.

Upon searching online, I found that Close Motor Finance Limited now a dissolved company for almost a year is associated with a telephone number listed as 0333 321 6060, which I have called and it goes through to Close Brothers Motor Finance.

Any guidance with the following would be much appreciated.

1. Did Close Brothers Motor Finance acquire Close Consumer Finance Limited/Close Motor Finance Limited?

2. Regarding any potential claim for hidden discretionary commission, would the Close Consumer Finance Limited/Close Motor Finance Limited liabilities have transferred to Close Brothers Motor Finance?

3. I cannot fathom out whether my potential claim is non-starter, or if I could potentially still have a claim now with Close Brothers Motor Finance.

Thanks,

ThriftyBrit

dunstonh

The bottom line is that none of it matters to you.  Here is the key reason:

I financed my car through Close Consumer Finance Limited, which rebranded to Close Motor Finance Limited in November 2002.

The DCA issue applies to finance arranged after April 2007 (there is a possibility that pre-2007 loans still in force in April 2007 will be included - that is unknown until the FCA report).

[Deleted User]

@ThriftyBrit it will be Close Brothers Motor Finance imo. I don’t know of any part of CB that couldn’t be held liable for a complaint or litigation via a link or transfer and I follow this quite closely. It’s a big group with plenty of different firms, brands and names over the years. However, as my colleague (can I call you that Dunst 🤣?) rightly points out, if the sale was that long ago it is very likely, but not certain, it will be a non starter after the FCA review. This is due to the focus on whether the commission gave rise to an unfair relationship and if a court would likely find that it did. These CCA changes came in across 4/07 to 4/08 as part of the 2006 changes and any finance that ENDED before 4/08 (bar some exceptions for finances taken 4/07 onwards) will not benefit from these changes to the CCA. That’s an important distinction, it doesn’t matter when it started if it was still LIVE in 4/08. Given the years you mention it’s a possibility. If it ended pre 4/08 it may not be suitable for a claim / complaint post review and a law firm wouldn’t touch it for the same reasons. Still, watch this space. Other reclaim finance has gone back further after something else emerges so keep your paperwork handy! If something pops up that isn't reliant on unfair relationship or some clever clogs can get the pre 07 element of the CCA to stand a test in court who knows 🤷‍♂️ but yeah for this review, very unlikely. Kudos for keeping your paperwork for so long!

ThriftyBrit

[Deleted User] said:

@ThriftyBrit it will be Close Brothers Motor Finance imo. I don’t know of any part of CB that couldn’t be held liable for a complaint or litigation via a link or transfer and I follow this quite closely. It’s a big group with plenty of different firms, brands and names over the years. However, as my colleague (can I call you that Dunst 🤣?) rightly points out, if the sale was that long ago it is very likely, but not certain, it will be a non starter after the FCA review. This is due to the focus on whether the commission gave rise to an unfair relationship and if a court would likely find that it did. These CCA changes came in across 4/07 to 4/08 as part of the 2006 changes and any finance that ENDED before 4/08 (bar some exceptions for finances taken 4/07 onwards) will not benefit from these changes to the CCA. That’s an important distinction, it doesn’t matter when it started if it was still LIVE in 4/08. Given the years you mention it’s a possibility. If it ended pre 4/08 it may not be suitable for a claim / complaint post review and a law firm wouldn’t touch it for the same reasons. Still, watch this space. Other reclaim finance has gone back further after something else emerges so keep your paperwork handy! If something pops up that isn't reliant on unfair relationship or some clever clogs can get the pre 07 element of the CCA to stand a test in court who knows 🤷‍♂️ but yeah for this review, very unlikely. Kudos for keeping your paperwork for so long!

Thanks for your response.  I have sent the MSE template letter to Close Brothers, and I will just have to see what happens with that, and how the FCA review goes.

[Deleted User]

All you can do atm @ThriftyBrit! Best of luck and as I said keep your paperwork to hand even if during this cycle of the process there appears no recourse for you as things can change in the future as they have for previous claims.

ThriftyBrit

To my surprise, Close Brothers responded the same day, albeit with what appears to be a standard reply indicating they have no information and require further details, despite providing them with a copy of the Agreement.

Understanding that it is a pre-2007 Agreement, I have asked Close Brothers what additional information they need. However, the deciding factor will obviously be the boundaries set by the FCA concerning pre-2007 Agreements. It would have been nice, however, to have received some form of acknowledgment regarding the Agreement from Close Brothers in the meantime, but that looks unlikely.

[Deleted User]

If you have the account statements or record of final payment (just final required) it doesn’t really matter what they have. The onus is in them to prove DCA commission wasn't paid. Personally hoping for an ‘average redress’ ruling for cases where detailed info isn't held as was done with PPI. Keep at it.