Archive · 1 Aug 2025
UK Supreme Court to Rule on Car Finance Commission
The UK's top court is deciding if car finance companies acted unfairly by paying commissions to brokers without customers knowing.
If the court sides with the customers, banks may have to pay back a lot of money, potentially billions.
The ruling will impact how car financing works in the UK, and the government might try to protect the banks.
The decision has the potential to affect the financial services market.
UK Supreme Court ruling on car finance commission looms, impacting lenders.
The court will decide if lenders needed informed consent for commission payments.
A ruling against lenders could lead to significant payouts.
The Financial Conduct Authority is expected to set out a compensation program within six weeks.
The government might consider legal changes to protect lenders.
- Who
- UK Supreme Court, lenders such as Close Brothers, FirstRand Ltd, and customers.
- What
- UK Supreme Court to rule on car finance commissions.
- When
- Ruling expected on Friday afternoon.
- Where
- UK Supreme Court in London.
- Why
- To determine if car finance commissions were fair.
Consumers
Lenders
Transparency of Commissions
Consumers
Customers should be informed and provide consent.
Lenders
Lenders claim commission disclosure was adequate.
Duties Owed
Consumers
Car dealers owed duties of loyalty to the customers.
Lenders
Lenders are liable where secret commission was paid to the broker.
- Court
- UK Supreme Court
- Subject
- Car finance commissions
- Key Parties
- Close Brothers, FirstRand Ltd
- Potential Payouts
- Billions of pounds
- FCA Action
- Compensation program within six weeks