Close Brothers Car Finance Provision: From £300m to £320m

Reviewed on 28 October 2026. The £300 million figure in older Close Brothers car finance headlines has been overtaken by later reporting. Its 2026 results explain how the provision changed and why the amount on the balance sheet differs from the headline charge.

What changed after the £300 million announcement?

In its 8 April 2026 update, Close Brothers distinguished a £294 million provision held at 31 January 2026 from an approximately £320 million estimate for the FCA scheme as published. The earlier £300 million income statement charge had already been affected by costs incurred and the treatment of the time value of money. At that announcement, the bank had not yet recognised a change to its provision.

Its 2026 results announcement, published on 29 September, subsequently reported a provision increase to approximately £320 million. By 31 July 2026, the remaining balance was £318.5 million, following further costs and the unwinding of the discount.

Why these figures are different

A charge records an expense for a reporting period. A provision is the estimated obligation still recognised in the accounts at a particular date. Payments of costs and changes in estimates can move that balance. Neither figure is a confirmed amount that a named customer will receive.

It would also be wrong to infer from a lender's provision that every independent dealer used the same commission arrangement. The lender, product and disclosure in your own paperwork matter more than whether you bought from a small dealership or a franchise.

What this means for your complaint

Use your contract to identify the finance provider; do not assume it was Close Brothers because the vehicle came from an independent dealer. If the agreement is with Close Brothers and you have concerns about commission, gather the agreement number, vehicle details and any dealer documents.

If you already have a complaint, keep the reference and follow the lender's updates. A new provision announcement alone does not require a duplicate complaint. If you receive a decision you disagree with, identify the specific reason and ask for a review; our rejected-complaint guide explains the distinction between scheme and ordinary complaints.

Accounting updates should not be treated as payment dates. Check our current scheme timetable alongside your lender's correspondence. Direct complaints are free; any optional use of our letter preparation service is subject to the charges on pricing.