Supreme Court Decision Could Shake UK's Car Finance Industry
The UK's Supreme Court is set to announce a critical decision on car finance commissions that may lead to significant compensation liabilities for banks. The ruling follows a Court of Appeal decision challenging the consent process for broker commissions. Financial institutions are braced for potential hefty payouts pending the court's ruling.
- Country:
- United Kingdom
The UK's Supreme Court is poised to deliver a pivotal ruling concerning car finance commissions that might compel banks to face multibillion-pound compensation obligations.
Major lenders like Close Brothers, Lloyds, and Barclays are on high alert following a Court of Appeal judgment requiring clear customer consent for broker commissions.
The Financial Conduct Authority is contemplating a redress scheme, estimated to potentially cost tens of billions, depending on the Supreme Court's verdict.
(With inputs from agencies.)
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