British lender Close Brothers anticipates higher legal costs for the year than previously expected, due to the industry challenging motor finance claim regulations in the Supreme Court. The company has allocated £165 million for potential claims and now estimates costs related to handling complaints and legal expenses to be around £22 million, up from the initial expectation of £10-15 million. These costs amounted to £8.4 million for the first half of the fiscal year ending on July 31. The industry is awaiting a Supreme Court ruling on the transparency of commissions in motor finance transactions, with a hearing scheduled for April 1 as London's Court of Appeal previously deemed it unlawful for car dealers to receive commissions without clients' consent. Among cost-cutting measures, Close Brothers announced a 15% decline in adjusted operating profit for the six months through January 31.