Close Brothers Share Discussion Threads

[flyfisher] 14/11/2024 15:18

Extending the legal theme.

In the barclays case, the garage offered finance at an advertised rate of 8.9% apr, with a guarantee that if you could find a better rate then they would refund double the difference.
As the court has ruled that the deal could have been at a lower rate, then can the customer now also seek redress from the dealers guarantee.

[chriss911911] 14/11/2024 13:31

The FCA will not have a mind an individual lender, there was not a failure when PPI hit, because government stepped in to avoid a run on a bank, but shareholders did fail, they took the brunt of it, this government will not care about CBG shareholders, not any shareholders, for that matter, yet they will want shareholders money again, and want to attract investment, then wonder why investment interest is not so good, still a rights issue, and or issue of debt, and or conversion of debt to equity so will destroy what little value there is left here to rubber stamp the value loss that the market clearly expects now.

[tsmith2] 14/11/2024 12:41

he says: the ruling would amount to a change of the law?

[stoopid] 14/11/2024 12:10

Yes, that was part of the argument from the lenders but, because they incentivised the brokers/dealers by allowing them to decide on the interest rates that the customer was charged between say 5% and 15% depending on what commission they thought they could make the lenders are at fault as well. For example, the lenders e.g. close brothers may have offered the loan at say 5%The motor finance dealer then offered the customer the loan at between 6% and 15% skimming off or getting a kickback from the lender. So, the overpayment/commission is the difference between the rate the loan was offered and what the broker/dealer actually got the customer to pay. This is why none of the banks/lenders can provide accurate figures as each individual deal will have to be looked at and the difference calculated plus any interest the FCA might suggest. CBG stopped offering DCA loans in 2016 and changed to a different DSM model but were still paying commissions although atbabreduced or capped level.Page 10/11 of their 2024 annual report https://www.closebrothers.com/system/files/rrp/reports/CBG%2520Annual%2520Report%25202024_0.pdf

[pj84] 14/11/2024 11:50

The Lloyds investor meet presentation yesterday is worth listening to the Q & A between 24.30 to 30.00 which deals with the uncertainties around the latest judgement.



The fireside chat with the Lloyds CFO and UBS the day before is also worth listening to from the beginning to 5.35 which also deals with the uncertainties around the latest decision.

[tsmith2] 14/11/2024 10:30

this may be really silly but shouldn't the onus be on the recipient of the commission to fully disclose and not the lender?

[jostrummer] 14/11/2024 10:12

I was just thinking the same thing, i bought an annual car insurance on monthly rather than the whole lot at once a few years back, mainly because of laziness on a car insurance comparison site it was the default option. I do remember it mentioned who the loan underwriters were and i just accepted it, didnt read the small print - wonder if that is a valid claim?

[davius] 14/11/2024 10:00

Back in the 80s I ran my own one man limited company and took out a company pension. The fees weren't explained to me at the time, there was no indication of how much of my monthly payments were being taken by the provider or the broker. No different really from not being told about car finance charges.

It pension charges get investigated we're talking financial armageddon...

[suetballs] 14/11/2024 09:40

The auditors will be on red alert now - I don't know how the Board was able to get away from giving a range of estimates in the recently published final accounts.
cbg - ok it's an old bank - but age doesn't always guarantee quality.

Suet

[peterrr3] 14/11/2024 07:55

The FCA is a political animal and the court judgement lines up well and gives more teeth with the manifesto it already has. Bigger fines, more compensation, gives higher prominence and any commercial fallout and onerous compliance it doesn't give a rats.

[thisaintme] 14/11/2024 06:02

"Motor finance: The legal battles are only just beginning"

Full article: www.cityam.com/motor-finance-the-legal-troubles-are-only-just-beginning/

[blueclyde] 13/11/2024 22:15

Well sadly the FCA now want everyone and anyone to complain it seems. The sheer cost alone to Close Brothers to take the time to investigate etc could be astronomical before they even have to pay anything out. The FCA have turned this into another absolute disaster that could drag on for who knows how long. What will they have gained if something like Close does go bankrupt? Everyone knew what they were signing up for. Instead of narrowing down the scope of things they have blown it wide open. Who expected that.

[ricardo montalban] 13/11/2024 20:48

This is going pear shaped and lloyds bank won’t be far behind it once recession and unemployment kick in and their house loans start going bad same as 08. These car loans were always going to blow up, surprised it took this long.

[j2m] 13/11/2024 16:52

CEO on long term sick leave and non execs taking up other lucrative posts. Who the heck is driving this ship??

[tomboyb] 13/11/2024 16:06

lose Brothers Group PLC Director Declaration
13/11/2024 4:00pm
RNS Regulatory News


RNS Number : 1394M
Close Brothers Group PLC
13 November 2024

Notification of Director's Other Appointments





In accordance with Listing Rule 6.4.9(2), Close Brothers Group plc ("Close Brothers" or the "Company") reports that Patricia Halliday, a Non-Executive Director of the Company and Chair of the Risk Committee, has been appointed a director of State Street Corporation, a company listed on the New York Stock Exchange, effective 8 November 2024.

Enquiries

Sarah Peazer-Davies

Company Secretary





[phone]



About Close Brothers

Close Brothers is a leading UK merchant banking group providing lending, deposit taking, wealth management services and securities trading. We employ approximately 4,000 people, principally in the United Kingdom and Ireland. Close Brothers Group plc is listed on the London Stock Exchange and is a constituent of the FTSE 250.

LEI Code: 213800W73SYHR14I3X91

[tomboyb] 13/11/2024 15:40

£23 billion -

Where are these figures from? They just seem to getting bigger and bigger -

[jonnybig] 13/11/2024 15:08

I remember folk shouting the likes of Bradford and Bingley can't possibly go bust. But they did. A few hundred million hit could destroy cbg, it's a huge amount of dosh for a small cap.

spud

[chriss911911] 13/11/2024 14:49

Now it's £1.85, for something worth well £0 but could be worth £4.00, it's deal or no deal territory, three boxes left, and the banker offers £1.83, but the big money you know is gone already, what do you do ?

The company will likely continue, the value for shareholders, not so sure too much will be left there, a rights issue will dilute what's left into the penny or 10p box, so £1.85, will seem like a good deal when it goes that far.

[tomboyb] 13/11/2024 13:20

Close going bust? -

I don't think so imo -

However it is possibly in really deep trouble -

[jonnybig] 13/11/2024 13:12

Going bust?

spud