Car finance mis-selling scandal: Millions of drivers denied payouts after Supreme Court ruling
Millions of drivers have been denied payouts as the Supreme Court ruled that lenders are not liable for hidden commission payments in car finance schemes.Two lenders, FirstRand Bank and Close Brothers, went to the UK’s highest court to challenge a Court of Appeal ruling that found that the “secret” commission payments paid by buyers to car dealers as part of finance arrangements made before 2021, without the motorist’s fully informed consent, were unlawful.The Supreme Court’s decision means that the bulk of the claims will not go ahead, leaving the door open to compensation for only the most serious cases and protecting banks from a wave of costly payouts. Experts now expect compensation to cost lenders between £5bn and £15bn, rather than the £45bn it was expected to cost if the Supreme Court upheld the ruling in full – a payout that would have been similar in scale to the one that followed the payment protection insurance (PPI) scandal, which cost the banks almost £50bn. The UK’s Supreme Court issued its long-awaited judgment on Friday in relation to the car finance commission saga More
