Supreme Court Ruling Looms: Billions in Car Finance Commissions at Stake
The UK's Supreme Court will make a pivotal ruling on car finance commissions, potentially leading to massive compensation claims against banks and finance firms. Lenders have already allocated billions to cover these claims. The ruling addresses dealers' responsibilities and the legality of undisclosed commissions.

The UK Supreme Court is set to deliver a landmark decision regarding car finance commissions that could trigger billions in compensation claims from banks and finance firms. The ruling, eagerly awaited after London's market close on Friday, follows an appellate court decision against undisclosed lender-to-dealer commission payments.
Key lenders, including Lloyds Banking Group, Close Brothers, and Barclays, have earmarked nearly £2 billion in anticipation of potential compensation claims. This case draws comparisons to the extensive recompense banks were required to pay for mis-selling payment protection insurance prior to 2019.
Central to the court's deliberations are three prior claims – two involving South African lender FirstRand and one against Close Brothers. The judgment will clarify the transparency obligations of car dealers operating as credit brokers and the fairness of secretive commissions, amid increased scrutiny and potential regulatory changes.
(With inputs from agencies.)
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- Supreme Court
- car finance
- commissions
- banks
- compensation
- motor finance
- Lloyds
- Barclays
- Santander
- FCA
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UK Supreme Court to rule on motor finance commissions on August 1