Overview

• 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.