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Big Banks Brace for Impact
The mis-sold car finance saga is heating up, with banks reserving huge sums for potential car finance claims. If you’ve ever financed a vehicle, this could affect you. Here’s a quick roundup:
Close Brothers recently set aside £165 million to cover possible PCP claims and legal costs, as reported by This is Money on February 12th. Days later, Lloyds Banking Group tripled its pot to £1.2 billion, per the BBC, slashing its profits as the scandal deepens.
Other lenders are on alert too. Santander UK has stashed £295 million, while Barclays and smaller players like MotoNovo Finance may face their own bills. Industry estimates suggest compensation could hit £8 billion or more. So why are banks setting aside the cash piles? Simple: they think big payouts are looming!
Our Take
When banks spot a potential liability, they stash funds to cover it. But how do they decide on the figures? Close Brothers says its £165 million could rise or fall, hinting at guesswork. There’s no clear formula—yet their actions scream one thing: they’re preparing for car finance claims. It’s not an admission of defeat; but more of a shield against what’s (potentially) coming.
If you bought a vehicle on finance or PCP between 2009 and 2024, then you might be owed money. The FCA’s review, due by December 2025, could greenlight a mass payout scheme. Curious about your odds? Use a car finance calculator to estimate how much you could be owed.
Stay tuned—the FCA’s ruling could unlock billions, and you may be due a slice. Affected by mis-sold finance? Explore your PCP claims options with by starting your claim below. The banks are getting ready—make sure you are too!
