Overview

• The Supreme Court overturned two of three Court of Appeal rulings on hidden dealer commissions, ruling that car dealers owe no fiduciary duty and that commission payments are not unlawful per se.
• Only Marcus Johnson’s claim under the Consumer Credit Act succeeded, with the court finding his dealer-finance provider relationship unfair and awarding him commission plus interest.
• Lords Reed, Hodge, Hamblen, Lloyd-Jones and Briggs unanimously rejected arguments that commission payments constituted bribes or breached a duty of undivided loyalty.
• Industry bodies including the Finance and Leasing Association praised the judgment for restoring legal clarity and averting multi-billion-pound liabilities for lenders.
• The FCA is expected to announce by Monday morning whether it will consult on a formal redress scheme, while consumer experts caution motorists to await regulator guidance before engaging claims firms.