Overview

• The Supreme Court's ruling, expected later in 2025, will determine lenders' reimbursement obligations for undisclosed car loan commissions.
• Hidden commissions led to inflated interest rates in Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements from 2007 to 2021.
• The Financial Conduct Authority banned discretionary commission models in January 2021, aiming to improve transparency and protect consumers.
• Chancellor Rachel Reeves has raised concerns about the economic impact of potential multibillion-pound payouts on credit availability.
• Claims management firms, such as My Claim Group, have already helped over two million motorists begin compensation claims, with average payouts estimated at £4,000.