Close Brothers Discriminatory Behaviour
Close Brothers, a prominent UK-based financial services group, has faced multiple allegations of discriminatory behavior and unfair practices in recent years. These allegations have raised concerns about the company’s commitment to equality and fairness in its operations. In this topic, we will examine some of the notable cases and controversies involving Close Brothers, shedding light on the company’s track record regarding discrimination and its efforts to address these issues.
Discrimination Allegations at Close Brothers
Over the years, Close Brothers has been involved in several legal disputes related to discriminatory behavior. These cases have attracted significant attention and scrutiny, highlighting potential systemic issues within the company.
1. Ms. M Morgan v Close Brothers Asset Management (2020)
In 2020, Ms. M Morgan filed a claim against Close Brothers Asset Management, alleging disability discrimination, sex discrimination, and unfair dismissal. The Employment Tribunal’s decision was published in July 2020, but the case was later withdrawn. The withdrawal of the claim does not necessarily imply that the allegations were unfounded, but it does indicate that the parties reached a resolution outside of the tribunal process.
2. Miss D Oladapo v Close Brothers Ltd (2017)
In 2017, Miss D Oladapo brought a case against Close Brothers Ltd, alleging race discrimination and unfair dismissal. The Employment Tribunal’s decision was published in January 2018. The case highlighted concerns about the company’s treatment of employees from minority ethnic backgrounds and raised questions about its internal policies and practices regarding diversity and inclusion.
3. Ms. A Simmonds v Close Brothers Vehicle Hire Ltd (2025)
In 2025, Ms. A Simmonds filed a claim against Close Brothers Vehicle Hire Ltd, alleging race discrimination. The Employment Tribunal’s judgment, delivered in March 2025, concluded that the claimant had not provided sufficient evidence to prove direct race discrimination. The tribunal emphasized that unreasonable conduct alone is not enough to infer discrimination and that there was no evidence of other discriminatory behavior on racial grounds. While the claim was not upheld, the case underscored the importance of robust evidence in discrimination claims and the need for companies to maintain fair and equitable practices.
Systemic Issues and Regulatory Scrutiny
Beyond individual cases, Close Brothers has faced broader scrutiny regarding its business practices, particularly in the motor finance sector.
Car Finance Scandal and Mis-Selling Allegations
Close Brothers has been implicated in a significant car finance scandal involving allegations of mis-selling and undisclosed commissions. The Financial Conduct Authority (FCA) and other consumer authorities initiated investigations into Close Brothers Finance following increasing complaints over potential mis-selling tactics. The allegations centered around the company’s failure to disclose key terms of its car finance agreements, such as interest charges, balloon payments, and potential penalties, in a clear and understandable manner. Additionally, concerns were raised about inadequate affordability checks and the company’s reward system for dealerships promoting specific finance products without fully exposing the terms and conditions to consumers.
In response to these allegations, Close Brothers set aside £165 million to address potential legal and compensation costs. The company also announced plans to raise £400 million to strengthen its balance sheet and canceled dividends to shore up its financial position. The FCA’s investigation and the subsequent legal proceedings have highlighted the need for greater transparency and fairness in the motor finance industry.
Company’s Response and Measures Taken
In light of the various allegations and controversies, Close Brothers has stated its commitment to addressing issues of discrimination and unfair practices within its operations. The company has implemented several measures aimed at improving its internal policies and ensuring compliance with regulatory standards.
1. Enhanced Training and Awareness
Close Brothers has introduced enhanced training programs for its employees to raise awareness about discrimination, diversity, and inclusion. These programs aim to foster a more inclusive workplace culture and equip staff with the knowledge and skills to identify and address discriminatory behavior.
2. Strengthening Internal Policies
The company has reviewed and strengthened its internal policies related to equality and fairness. This includes updating recruitment practices, performance evaluations, and grievance procedures to ensure they are free from bias and discrimination.
3. Increased Transparency and Accountability
Close Brothers has committed to greater transparency in its operations, particularly concerning its financial products and services. The company has pledged to provide clearer information to consumers about the terms and conditions of its offerings and to disclose any commissions or incentives associated with its products.
While Close Brothers has faced multiple allegations of discriminatory behavior and unfair practices, the company has taken steps to address these issues and improve its operations. The legal cases and regulatory scrutiny have underscored the importance of maintaining fair and equitable practices in all aspects of business. Moving forward, it will be crucial for Close Brothers to continue its efforts to create an inclusive and transparent environment for both its employees and customers, ensuring that discrimination and unfair treatment have no place within the organization.