Close Brothers (LSE:CBG) has modelled the FCA's Policy Statement PS26/3 and reckons the published motor finance redress scheme would produce a pro‑forma provision of about c.£320m as at 31 January 2026, the company said.
The lender added it is "considering its next steps" and will monitor any further legal, regulatory and industry developments, including possible legal challenges or consumer claims.
The c.£320m estimate is derived from the policy statement methodology and a number of company assumptions - including that c.720k UK regulated motor finance loans written between 6 April 2007 and 1 November 2024 would qualify for redress, an average redress of c.£500 per customer (including compensatory interest), and a 75% estimated claims rate. It also estimated delivery costs of c.£66m, excluding c.£14m of costs already charged against the existing provision.
Close Bros said it is expecting a roll‑out timetable from summer 2026 to the end of calendar 2027.
The outcome of the group's ongoing provision review will depend on further legal, regulatory or industry developments, sensitivities to the assumptions above and additional analysis and interpretation of the scheme rules, it said.
"The group is well positioned and remains confident in its ability to deliver against its strategy, as outlined at the Half Year Results and business update on 17 March 2026, underpinned by a resilient business model, a strong capital position and a clear focus on execution to deliver long‑term value for shareholders." the company said.
