Close Brothers Warns of Higher Provision for Motor Finance Costs

Close Brothers Group Plc said it is likely to make a “material increase” to its provision to compensate customers who were missold car loans now that the UK regulator has set out plans for the refund program.

The amount of any extra provision is still under review, though the firm remains confident in its capital strength, according to a statement Thursday. Close Brothers said in February it had set aside £165 million ($221 million) for the expected costs linked to motor finance misselling.