Termination of inactive credit agreements
We’re committed to being an efficient and effective organisation that delivers great customer outcomes, so we’re doing some general housekeeping and improving our management of old credit agreements.
We have already completed an internal task to terminate all inactive credit agreements, that are fully settled, and over 2 years old. At the end of August 2026, we will introduce a new automated process that will terminate credit agreements which are up to 2 years old, fully settled and inactive. We will contact these customers in advance to explain that their credit agreements have been fully settled and are no longer in use, so will be terminated.
We have also established an automated process so that moving forwards, all fully settled and inactive credit agreements will be terminated in the same way.
What this means for you
Existing customers who continue to use premium finance for renewals, MTAs or other future lending will not be affected and their credit agreements will remain active. Customers who continue to use premium finance regularly will see no change to their experience.
A new credit agreement will only be required when a previous agreement has been fully settled and remained unused for an extended period, before being terminated.
How and when customers are notified
We will contact all customers 2 months before their credit agreement termination date. Termination dates differ depending on the type of credit agreement:
- For standard credit agreements with 12 monthly instalments or less – credit agreements will be closed at 16 months after inception date.
- For more bespoke credit agreements, such as those with more than 12 monthly instalments - credit agreements will be closed 10 months after the final payment date .
Why are Close Brothers terminating old credit agreements? Brokers audience - Finance applications
As part of a general housekeeping exercise, we are terminating credit agreements that have had no activity for a while. This helps us keep our records accurate and up to date.
Will I receive any notifications or alerts when credit agreements are terminated? Brokers audience - Finance applications
No, brokers will be made aware of the process changes but will not be informed on an individual customer level when a termination notice is sent or when a credit agreement is terminated.
Which customers will be affected by this change? Brokers audience - Finance applications
Only customers with fully settled and inactive credit agreements may be affected. Customers who continue to use premium finance for renewals, MTAs or other future lending will not be affected, and their credit agreements will remain active.
Why can’t I reuse the old credit agreement? Brokers audience - Finance applications
The credit agreement was terminated because it had no activity for a while which means a customer's finance was paid in full and there was no further lending. Once terminated, it cannot be reused or support any new lending, even if it previously supported multiple loans. If the customer wishes to take out new finance, a new credit application will need to be completed as part of the standard new-business journey, in line with regulatory requirements.
The old RACA status in i-prompt will be ‘C’ (cancelled) and cannot be reopened or reinstated.
Does this change the broker submission journey? Brokers audience - Finance applications
Brokers will follow the standard new-business journey for returning customers, which requires a new credit application to be submitted. While setting up a new credit agreement may result in a small increase in processing time, there is no change to the existing process, so CBPF expect the impact to be minimal.
Can the terminated credit agreement be reinstated? Brokers audience - Finance applications
No. Once a UK credit agreement is terminated, it cannot be reopened. Any future lending must proceed under a new credit application.
What should I tell a customer if they contact us about the termination? Brokers audience - Finance applications
Explain that the credit agreement was terminated as it had no activity for a while (customer's finance paid in full and there is no further lending) therefore, cannot remain active. Reassure them this is not due to anything they have done and does not affect eligibility for future lending, and that a new credit application may be made. Please note, standard decline/rejections of credit agreements (i.e. CDD/Credit Decisions etc) will continue as per normal.
I have a question about this, who do I ask? Brokers audience - Finance applications
If you have any questions, please get in touch with your sales manager who will be happy to support.