Overview

• Supreme Court justices overturned the Court of Appeal’s broad compensation finding from October, ruling lenders not liable in almost all test cases and awarding commission plus interest to one claimant.
• The Financial Conduct Authority has six weeks to confirm whether it will establish an industry-wide redress scheme for motorists affected by undisclosed commission arrangements.
• The Treasury is exploring potential legislative reforms to contain compensation liabilities and safeguard the stability of the motor finance market.
• Financial analysts cut pre-ruling payout forecasts from about £44 billion to roughly £11 billion in anticipation of a more limited judgment.
• Consumer groups estimate that as many as 23 million of an estimated 32 million car finance agreements from 2007–2021 could qualify for compensation under any scheme.