Overview

• A Slater & Gordon poll shows 45% of UK adults, over 23 million people, expect to be eligible for compensation on car finance deals arranged between 2007 and 2021.
• The Supreme Court will issue its judgment in July on a case that could widen eligibility to include leasing and other finance products beyond cars.
• Major lenders including Lloyds, Santander, Close Brothers and Barclays have set aside £1.7 billion, though Moody’s warns total liabilities could reach £30 billion.
• The FCA, which banned discretionary commission agreements in 2021 and launched an investigation in January 2024, is preparing a redress scheme to automatically compensate affected borrowers.
• Close Brothers and MotoNovo Finance have appealed to the Supreme Court, contesting that undisclosed dealer commissions were unlawful without fully informed consent.