UK Supreme Court Reviews Landmark Car Finance Commission Case

Banks appeal Court of Appeal ruling on undisclosed commissions as potential £44 billion compensation looms.

The UK Supreme Court has begun a three-day hearing on a case concerning undisclosed commissions in car finance agreements made before a 2021 ban.
Close Brothers and FirstRand Bank are appealing the October 2024 Court of Appeal ruling that deemed such commissions unlawful without informed consumer consent.
The Financial Conduct Authority (FCA) has argued that the Court of Appeal ruling goes too far in treating car dealers as fiduciaries with duties to act in consumers' best interests.
Banks, including Lloyds, Santander, and Barclays, have collectively set aside billions of pounds in anticipation of potential compensation payouts, with estimates ranging from £16 billion to £44 billion.
The Supreme Court's decision, expected later this year, could have far-reaching implications for commission-based sales across industries and for consumer protection standards.