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Close Brothers axes dividend over car finance deals probe
Daily Express
|February 16, 2024
MERCHANT bank Close Brothers has axed its dividend to build up reserves as a probe into historic car finance deals could result in it having to compensate borrowers.
City watchdog the Financial Conduct Authority last month launched an inquiry into motor finance deals prior to January 2021.
Back then, some lenders allowed car dealers to adjust rates interest which on loans, increased commission payments to them. The discretionary commission arrangements were banned in 2021.
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