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Really? halved in the last year
Another afternoon of "goofy" multiple trades - 182 or 191 or 199. etc Whatever can it mean?
And someone has just dumped 868k from the look of it.
Interesting - buys of 100,000 and 50,000 at 11.50
Even lower today, got myself another 2k. Loads of bargains around elsewhere as well.
Lol. Wonderful share to trade. Time to buy some more while the price is artificially low.
At first glance this appears to be a shot across the boughs of other companies, not so much CBG who have already suspended their dividend and announced plans for putting together a £400m pot of cash to cover potential costs arising from the FCA decision.
Although recovered now from its 'all time low', the SP still has a good way to go yet to come anywhere close to true value albeit that's part of a wider issue with Banking/Finance shares as a whole and even the loss of 'shine' from London markets.
Came across these guys (corporate/junior/mezz finance etc), a fair bit in my working days and they were always thorough, professional who knew their market well and whilst niche players, stuck to what they knew and were never overt risk takers per se.
Fair bit still to go in the SP recovery imo.
Wonderful share..........................
I love this share !!
Up 50% now so sold investment amount and leaving the rest in as free ride as believe will be back to over £8 in next year or so.
Will enjoy the ride. Wish my H&W had performed this well MaryB 😉
Winner winner
Positive price pivot sector break today, and sector broke above 1/3/24, time pivot high on 21/3/24.
Bollinger band high of 434.96, is expected to constrain 97% of sp movement.
Sp, pivot, from calendar month of March(high+low+close) is 388.66, so bullish.
R1, resistance from calendar month of March(pivot x 2)-low is 449.92.
However sp, still requires to break above weekly price down bar 441.8 of 12/2/24(several weeks ago).
Fibonacci 38.2% retracement towards previous major high, is situated at 477.4. DYOR.
“RBC have estimated a total liability of £16 billion
So 2.4% gives a liability of almost £400 million”
From https://www.which.co.uk/news/article/car-finance-fca-investigation-what-you-need-to-know-a4eXb5u8VeBy
“Analysts at RBC Capital Markets estimate the redress bill could come to £2.5bn for Lloyds, £1.1bn for Santander, £350m for Barclays and £250m for Close Brothers.”
Saying that, Close Brothers are building £400m of immediately accessible capital - so that is probably their worst case estimate.
Personally, I’m punting £160m.
We should probably organise a sweepstake.
RBC have estimated a total liability of £16 billion
So 2.4% gives a liability of almost £400 million
Really useful asartara as it gives one way of sizing...
"...Black Horse (includes Jaguar, Land Rover and Suzuki) 16.1%
...
Close Brothers 2.4%
...
Lloyds has already put aside a provision of £450,000,000 towards potential costs and payouts for this."
Very imprecise, but if you scale that £450m then you get around £67m. Not the end of the world.
Breakdown of biggest lenders complained to via MoneySavingExpert's car finance tool
Lender (and the manufacturers they work with) Proportion of complaints
Black Horse (includes Jaguar, Land Rover and Suzuki) 16.1%
Volkswagen Financial Services (includes Audi, Seat and Skoda) 14.1%
Stellantis Financial Services (includes Citroen, Fiat, Peugeot and Vauxhall)
8.4%
Santander (includes Hyundai, Kia and Volvo) 8.2%
BMW Financial Services (includes Mini) 7.4%
MotoNovo 6.8%
Mobilize (includes Renault, Nissan and Dacia) 4.3%
Ford Credit Europe
4.3%
Mercedes Benz Financial Services 3.6%
Barclays Partner Finance 3.1%
Alphera 3.1%
Toyota Financial Services (includes Lexus) 2.5%
Close Brothers 2.4%
Northridge 2.4%
Blue Motor Finance 1.1%
Martin Lewis: 'If you're eligible, you should think about logging a complaint sooner not later'
Martin Lewis, founder of MoneySavingExpert.com, said: "The numbers of complaints in not much more than a month is staggering – off the charts – far more than I expected.
"So, it's not surprising that some firms are struggling to respond to complaints in a decent time. To frustrated complainers, I'd say for now we should be prepared to give companies some wriggle room on timings, but firms need to urgently step up their complaint handling resources.
"And this is just the beginning. Even though we were at the vanguard of PPI and bank charge reclaiming, in terms of numbers of complaints, this feels like it is building up even more quickly. In value terms, car finance mis-selling is potentially going to be the second biggest reclaim payout in UK history – possibly over £10 billion repaid – which could even provide a fillip to the economy as PPI did.
"Lloyds has already put aside a provision of £450,000,000 towards potential costs and payouts for this. A strong indication that it thinks it, and by inference others, will probably need to pay back money due to discretionary commission arrangements mis-selling. Though of course, we won't know until the Financial Conduct Authority's (FCA's) ruling due in September.
"And it's because we don't know what the FCA will say in September, that eligible people should look at logging a complaint sooner not later – as the unknown means there's the risk people may be ineligible if they wait to claim. The regulator's own website information indicates timing may be an issue and says 'so, if you think you could be running out of time, you should consider complaining to your provider now'."
CT’s Moss sells out of ‘uninvestable’ Close Brothers
Columbia Threadneedle’s David Moss used a short-lived recovery in shares of Close Brothers (CBG) to sell out of the beleaguered private bank.
The stock was the largest detractor in Moss’s £117m CT High Income (CHI) investment trust in February after it announced the cancellation of its interim dividend in order to start building reserves to meet potential liabilities from the Financial Conduct Authority’s review of motor finance practices.
Moss used a ‘small recovery’ in the share price to sell his position over the month.
‘The FCA review will not report until September and, as we are unable to accurately assess the potential redress payable from the review, we felt the stock had become uninvestable, with the cancellation of the dividend removing one of the key reasons for ownership,’ he said.
https://citywire.com/investment-trust-insider/news/expert-view-close-brothers-dfs-softcat-jd-foxtons/a2439360
Alliance News) - Millions of claims could be lodged by UK drivers who may have overpaid on their car finance, as the emerging issue has the potential to be "on par" with the PPI scandal, a consumer compensation expert has said.
The UK's financial regulator is currently reviewing whether people could be owed compensation for being charged too much for car loans.
It is looking into hidden and unfair commission arrangements on loans taken out between 2007 and 2021.
Simon Evans, the boss of trade group the Consumer Redress Association, which represents claims management companies, said that people are likely to have bought more than one car during that period.
This could more than double the number of claims that come through.
It comes after consumer expert Martin Lewis revealed earlier this month that 1.1 million people had submitted complaints through a free tool on the MoneySavingExpert.com website, which he founded.
He described the number of complaints as "staggering" and suggested that car finance mis-selling could be the "second biggest reclaim payout in UK history" after the PPI scandal.
That saw UK banks pay out billions of pounds in compensation to customers who were mis-sold personal protection insurance from the mid-1990s.
Evans suggested that the scale of those affected has the potential to be "on par" with PPI.
"If you think about the number of people who have bought cars in the last decade-and-a-half, there is a swathe of people who will have bought it in that way," he said, referring to the discretionary commission arrangements.
"What we are seeing through our member firms who are engaging with consumers at the moment is that actually each person has an average of about 2.3 claims.
"So they have had two or three cars in that period and all of those qualify for a claim."
This is likely to cause a "large headache" for car finance companies, Evans said.
But he added a "note of caution on the good work Martin Lewis is doing", suggesting that while many people will have downloaded the template complaint letter, it may not mean that they will all have taken the next step of sending it to their lender.
Meanwhile, the chief executive of the Financial Conduct Authority, Nikhil Rathi, recently downplayed comparisons with the long-running PPI redress.
He said he did not anticipate the car finance issue "playing out as PPI did", partly because the watchdog has intervened earlier.
Lloyds Banking Group PLC, which owns Black Horse, the UK's largest car finance lender, said last month it was setting aside a provision of GBP450 million to cover potential costs related to the FCA's review.
That includes the potential compensation for consumers as well as administration costs in dealing with complaints
If it pops down another 18p or so to the 380s will be time to play - yet again.
Best share this year >>> So far 😉
I'm so confused about what BOA are doing with their shares in these RNS's? They're picking them up and then dumping them again by the looks of it, didn't know BOA carried on like day traders? I dunno
To be fair they should both be on the hook. Yes it was the Dealer who "sold" the interest rate at a higher level than needs be and profited from that via the higher commission payment. Butm the funders did facilitate this and would also have benefited financially via higher interest recovery
Bruce Packard a former bank analyst has a regular column for Sharepad. This week he covers CBG.
Says the £400m they are putting aside is both sensible and realistic, although it will affect short term profitability as either money is not invested or 'safer' options are pursued with lower returns.
CBG provided range of (6) analysts estimates on potential cost of redress impacting business between 2024 and 2026 of £150m to £350m - average of £271m.
He and his friend who runs a hedge fund don't understand why banks are on the hook for this rather than the car dealers.
Thinks in 18 months CBG could be back to earning 15% ROE with eps of around £1.65, possibly 18.5% ROE business once Winterflood etc start hitting their stride.
He has bought some shares.
All he has done is said that anyone getting a response that they don't have a claim, they should forget it as no bank or whatever would risk telling porkies about this. imo loads of people who maybe didn't even buy a car have probably claimed on the off chance that the FCA will just accept all claims and have such payed out.