Close Brothers Share Discussion Threads

[blackhorse23] 29/10/2024 10:30

Exactly lol he act like 15 lol

[stoopid] 29/10/2024 10:21

Tape Recorded???Showing your age there LOL ?

[blackhorse23] 29/10/2024 09:40

What is the bottom? 100p ?

[diku] 29/10/2024 09:26

It is getting to a point where all these finance deals discussed between borrower and lender will have to be recorded...tape recorded...

[tomboyb] 29/10/2024 09:05

£387million is the worst case scenario for close -

I don't think anyone call predict what Close will incur if the decision stays with the FCA -

[cirlbunting1] 29/10/2024 06:12

Even if the "secretive commission" is mentioned in the T&Cs, the court has ruled it’s not enough because "lenders know the borrower is highly unlikely to read”.

Further, In all three cases, the consumers were deemed 'financially unsophisticated.' Honestly, I wish I was making this stuff up…

Reference: hxxps://www.bailii.org/ew/cases/EWCA/Civ/2024/1282.html

"(1) Does a statement in the terms and conditions of the credit agreement that commission may or will be paid have the effect of negating secrecy, even where the borrower has neither read the statement nor been directed to read it?
Answer: not necessarily. The question whether the borrower has been told or informed about the commission will depend on the facts of each case, including the steps, if any, that are taken to bring the matter to his attention. Burying such a statement in the small print which the lender knows the borrower is highly unlikely to read will not suffice.”

“In each of these three appeals the claimants were financially unsophisticated consumers on relatively low incomes who, prior to January 2021, engaged car dealers as their credit brokers to arrange hire-purchase agreements (and in one case, an additional personal loan) on their behalf, to enable them to acquire a second-hand car for less than £10,000. On each relevant occasion (there were two transactions in the case of Mr Wrench) only one offer of finance was presented to, and accepted by, the claimant. Although different car dealers were involved, the same lender, FirstRand Bank Ltd (trading as MotoNovo Finance) ("FirstRand") provided the finance in Mr Johnson's and Mr Wrench's transactions. The lender in Miss Hopcraft's case was Close Brothers Ltd ("Close").”

[pj84] 28/10/2024 21:57

"RBC’s worst-case scenario now estimates a £3.9bn bill for Lloyds, including compensation, interest and administration costs.

That number has increased from a previous estimate of £3.5bn. RBC forecasts a potential £387m hit for Close Brothers, up from £350m.

Toms said analysts’ estimates for the potential fallout have generally been “too optimistic” and expected them to now “move their impact assessments closer to our base case”.

RBC’s base case is £2.5bn for Lloyds and £250m for Close Brothers."

The above is from today's article so I don't know how anyone can suggest CBG's liability is going to be anywhere near 50% of LLoyds.

[diku] 28/10/2024 21:11

CURYman is here...

[robizm] 28/10/2024 19:56

When Blackhorse spouts doom and gloom and sell, then that is the time to buy. I have never seen him make a correct call on any share.

[blackhorse23] 28/10/2024 19:08

https://cardealermagazine.co.uk/publish/honda-pulls-car-finance-and-delays-customer-handovers-in-wake-of-close-brothers-ruling/309334

[blackhorse23] 28/10/2024 18:53

https://www.proactiveinvestors.co.uk/companies/news/1059281/lloyds-and-close-bros-facing-much-greater-motor-finance-uncertainty-after-appeal-says-broker-1059281.html

[karv1] 28/10/2024 16:20

Just a thought
Is the motor division classed as a separate company could they just close it down if needed. I have no idea how companies with parent companies works.

[blackhorse23] 28/10/2024 15:18

Nothing to do with NAV , amigo share price was 300p to down 1p ! this stock is facing profit warning , loss making and also liabilities is huge as well! Group borrow money then lend people ! it's not their own money

[chriss911911] 28/10/2024 14:30

Tomboyd, both have put similar amounts away so far 0.4bn, why because Close management imagine Close has 50% less exposure, I'm being generous as I think close are being more prudent, so 50%, might be wrong in which case Close exposure is per how they have acted so far similar to Lloyds.

Close have gone even further, by suspending business, (post 2020)so that throws any analysis into further question, as I didn't imagine exposure beyond 2020 until now, either way the relative loan exposures are not so far away, but being just 0.5bn market cap, v 30bn market cap does matter.

[diku] 28/10/2024 14:22

Moral of story...is NAV just a gimmick?...

[suetballs] 28/10/2024 14:10

I don't think this is overdone (although I did originally think that) - anything "secret" withheld from the consumer is always going to create a major problem.
I suppose the FCA will sit on the fence until the Supreme Court lays an egg which may well be in another 12 months or so.
In the meantime will you plump to do business with cbg.
Suet

[teddy100] 28/10/2024 14:09

That is why it is 70% down from its 12 month high, ya nugget! The NAV is over a 1000p.

[blackhorse23] 28/10/2024 13:58

Piku are you sleeping? lol overdone ??? Group facing fine 400m then loan default probably another 200m , profit wipe out for next 3-4 years

[diku] 28/10/2024 13:51

All over done...it sure created trading frenzy and price action...

[34adsaddsa] 28/10/2024 13:38

The difference is probably that you're not borrowing money from them to buy those things.

[timmy11] 28/10/2024 13:36

Honda has told its car dealers that it will pause paying out on car finance after the landmark ruling in the Court of Appeal on Friday. In a bulletin to its dealers this weekend – seen by Car Dealer – Honda Finance Europe operations director Richard Winter told its dealer partners of its 'difficult decision'.5 hours ago

[kemche] 28/10/2024 13:34

We know that supermarkets get inducements and rebates from manufacturers for selling their products. Will I now be able to claim for cans of beans bought from Tesco? Will Tesco need my written consent?

[timmy11] 28/10/2024 13:28

also lots of companies have loans with close bros, what happens if close becomes insolvent?

[timmy11] 28/10/2024 13:17

this country is imploding, do they really want to put these banks in jeopardy

north sea oil is already decimated

[neilyb675] 28/10/2024 13:14

a very high percentage of people buy cars with some form of credit, this will kill the car industry