US Edition
Car finance compensation landmark ruling due
UNITED KINGDOM, AUG 1 – The UK Supreme Court’s decision could trigger a compensation scheme covering up to 40% of car finance deals, affecting millions of drivers and potentially costing banks billions.
- The UK's Supreme Court is delivering a landmark ruling today on whether car dealers must disclose commissions to customers in motor finance deals.
- This ruling follows an October 2023 Court of Appeal decision that found secret commissions unlawful when added without customers' informed consent.
- The case involves multiple claimants and affects motor finance deals made before 2021, with potential payouts impacting millions of motorists and numerous lenders.
- Analysts now estimate the scandal could cost the sector £11 billion, with Lloyds alone setting aside £1.2 billion for potential compensation.
- The Supreme Court decision could trigger a large redress scheme overseen by the FCA, balancing consumer fairness with the motor finance market's stability.
75 Articles
75 Articles
UK Finance Ministry Embraces Supreme Court Ruling on Car Finance
UK Finance Ministry Embraces Supreme Court Ruling on Car Finance The UK's finance ministry has expressed respect for a Supreme Court ruling concerning car finance commissions. The ruling is expected to alleviate some banks' concerns regarding the depth of a redress scheme related to finance commissions.In a statement, a Treasury spokesperson confirmed the ministry's commitment to understanding the ruling's ramifications. 'We respect this judgmen…
Watauga Democrat
UK top court to rule on multi-billion pound car loan scandal
Britain's highest court will Friday determine whether controversial car loans were unlawful, which could pave the way for millions of motorists to claim billions of pounds in compensation from banks.
Associated Press News
UK lenders await top court's decision over auto finance payments
Millions of motorists in the U.K. could be entitled to sizeable compensation payments if the country’s Supreme Court decides Friday that certain hire-purchase agreements were unlawful.
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