UK Supreme Court to Hear Appeal on Car Finance Commission Ruling

The decision to grant an appeal could impact a potential £30bn compensation bill for lenders and reshape the motor finance market.

The UK Supreme Court has granted Close Brothers and FirstRand permission to appeal a Court of Appeal ruling on undisclosed car finance commissions.
The October ruling deemed it unlawful for car dealers to receive commission payments without fully informing customers, opening the door to significant compensation claims.
The Financial Conduct Authority (FCA) has welcomed the expedited appeal process and is considering intervening to provide expertise on the case.
The motor finance industry faces potential liabilities of up to £30bn, with comparisons being drawn to the scale of the Payment Protection Insurance (PPI) scandal.
A final Supreme Court decision is expected by summer or autumn 2025, providing much-needed clarity for lenders and consumers alike.