Car finance scandal: lender sets aside £165m for possible compensation costs

Estimate by Close Brothers follows thorough assessment' of court case's impact on UK vehicle loan industry

One of the UK's biggest providers of motor finance has warned it expects to set aside up to 165m in the first half of its financial year to cover possible legal and compensation costs as a result of the car loans commission scandal.

Close Brothers said it had come up with the estimate after a thorough assessment" of the long-running case, although it warned there was still significant uncertainty" over the outcome of appeals and the investigation by the Financial Conduct Authority (FCA).