Overview

• On August 1, the UK Supreme Court dismissed claims of fiduciary duty breach and bribery in Johnson v FirstRand Bank and Hopcraft & Wrench appeals while upholding an unfair-relationship claim under section 140A of the Consumer Credit Act.
• The court found that a 55% dealer commission was undisclosed and unfair, entitling customers to full repayment of the commission plus interest.
• The FCA will consult by early October on a redress scheme under FSMA section 404 covering motor finance agreements from 2007, with consumers able to lodge complaints until December 2025.
• Under the ruling, lenders and brokers bear the burden of proof to demonstrate that any commission was fully and prominently disclosed before contracts were signed.
• The decision extends scrutiny to all intermediary commission models and is expected to trigger waves of individual claims, prompting firms to review historic practices and safeguard evidence.