UK Supreme Court's Pivotal Ruling on Car Finance Commissions: A Game-Changer?
The UK's Supreme Court is to rule on car finance commissions, a decision that may impact major banks with potential multi-billion-pound compensation. Lenders like Lloyds have reserved funds for payouts. The Financial Conduct Authority is contemplating a redress scheme; the wider effects could influence UK economic policy.
The UK's Supreme Court is set to reveal its decision on car finance commissions, a case that could lead to billion-pound compensation liabilities for some major banks.
Close Brothers and FirstRand are challenging a pivotal ruling requiring full consumer consent for broker commissions. This case has rattled the £40 billion-a-year motor finance industry, affecting stocks of key players such as Close Brothers and Lloyds.
Lloyds, Santander UK, and Barclays have earmarked substantial funds for potential compensations. Following the Supreme Court's ruling, the Financial Conduct Authority (FCA) will decide on a redress scheme, possibly imposing extensive costs on the banking industry.
(With inputs from agencies.)
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