Reclaim Car Finance Commission from Close Brothers Motor Finance
Close Brothers Motor Finance, alongside MotoNovo (FirstRand), was at the centre of the commission question that went all the way to the Supreme Court in Johnson v FirstRand on 1 August 2025. The court rejected the bribery and fiduciary duty arguments but accepted that a hidden commission paid to your dealer could still make the finance relationship unfair under the Consumer Credit Act. The FCA then confirmed its redress scheme in March 2026. If you financed a car through a dealer who used Close Brothers and were kept in the dark about their commission, you may be owed money back plus interest. You complain yourself, it is free, and you keep all of it.
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Your claim is grounded in section 140A of the Consumer Credit Act 1974, which allows a credit agreement to be reopened where the lender-borrower relationship was unfair. In Johnson v FirstRand (1 August 2025) the Supreme Court held that, while the dealer owed no fiduciary duty, the relationship could still be unfair. The FCA's motor finance redress scheme, set out in PS26/3 (30 March 2026), covers agreements from 6 April 2007 to 1 November 2024 where commission was not properly disclosed, including discretionary commission arrangements, high commission, and undisclosed ties to a lender. The scheme is free, and if Close Brothers gets it wrong the Financial Ombudsman Service can step in at no cost to you.
Step by step
- 1Gather your Close Brothers agreement number, the car's registration, and the approximate date you signed. If your paperwork is gone, they can trace the agreement from your personal details.
- 2Submit your complaint through Close Brothers Motor Finance's online commission complaint form. You can also write to the Complaints Department at their registered office, Close Brothers Limited, 10 Crown Place, London, EC2A 4FT. State that the commission was not properly disclosed and that this made the relationship unfair under section 140A.
- 3Expect an acknowledgement of your complaint. Where your agreement fits the scheme, Close Brothers must handle it in line with the FCA rules, with the implementation period ending 30 June 2026 for agreements from April 2014 onwards and 31 August 2026 for earlier ones, followed by up to three months to notify you of the outcome. Keep your complaint reference safe.
- 4If you are unhappy with their answer, refer the complaint to the Financial Ombudsman Service for free, normally within six months of the final response. The Ombudsman assesses the fairness of the relationship independently of Close Brothers.
What they'll say, and your comeback
“The Supreme Court ruled in our favour, so you have no claim.”
Comeback, Only partly. The court rejected the fiduciary duty and bribery arguments but confirmed that an undisclosed commission can still make the relationship unfair under section 140A. That is the basis of the FCA scheme Close Brothers is now required to operate.
“Everything is on hold because of the litigation.”
Comeback, The scheme rules in PS26/3 are final and your complaint must still be logged and assessed. The complaint handling pause lifted on 31 May 2026. Getting your complaint in now secures your place and costs you nothing.
“Commission was standard practice, so there was nothing to disclose.”
Comeback, Being common does not make it fair. The test is whether you were told clearly enough to consent. Ask Close Brothers to show where you actually agreed to the commission and its size.
FAQ
Why was Close Brothers in the Supreme Court?
Close Brothers Limited was the lender in the Hopcraft case, one of three conjoined appeals heard with Johnson and Wrench (both involving FirstRand/MotoNovo). The judgment on 1 August 2025 settled the law on commission and unfair relationships and paved the way for the FCA's redress scheme.
What will it cost me to claim?
Nothing. Complaining to Close Brothers directly and escalating to the Financial Ombudsman are both free. Avoid claims firms that take a cut, often around 30% plus VAT, for work you can do yourself.
Ready to get your money back?
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A self-serve tool, not a law firm. General information, not legal advice.