UK Faces Economic Crisis as Car Finance Ruling Sparks Market Turmoil

A Court of Appeal decision on undisclosed car finance commissions threatens to trigger a credit crunch, impacting banks and the auto industry.

The Court of Appeal ruled that undisclosed commissions on car finance deals are unlawful, causing major lenders' share prices to plummet.
Car companies like Honda and BMW temporarily halted finance sales while assessing the ruling's implications.
The case originated from Marcus Johnson's lawsuit over an undisclosed commission on his car loan, potentially opening the door to billions in compensation claims.
The Financial Conduct Authority banned discretionary commission arrangements in 2021, but the ruling affects all commission structures.
The UK government and Bank of England may need to intervene to prevent a broader economic crisis as the auto and finance sectors reel from the decision.