Landmark motor finance ruling to go to appeal
A landmark ruling on commissions paid in motor finance will go to appeal, the Supreme Court has said.
The ruling in October deemed that paying undisclosed commissions in car finance deal was unlawful. Experts said the shock decision could be as far-reaching as the PPI scandal, and potentially cost lenders and finance companies anything from £30bn to £50bn in compensation.
However, the Supreme Court has now granted permission for the two car lenders involved in the original case, Close Brothers and FirstRand, to appeal.
The hearing is expected to take place in the first quarter of next year.
The Financial Conduct Authority said: “We previously wrote to the Supreme Court asking it to decide quickly whether it will give permission to appeal and, if it does, to determine the substantive appeal as soon as possible. This is because of the potential impact of any judgment on the motor finance market and the many consumers who rely on it.
“We are considering whether to formally intervene in the case to share our expertise to assist the court on the substantive appeal.”
Meanwhile, Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), added:
“The automotive sector plays a vital part in the UK economy and the uncertainty caused by recent findings threatened to undermine the whole vehicle sales and lending infrastructure. The Supreme Court ruling will be very welcome news for our members and a very positive step in the right direction for our industry.”
