April 1, 2025 - 11:59
Major banks are bracing for the outcome of an appeal concerning motor finance commissions, which is set to be heard by the UK's Supreme Court. The case has significant implications for the financial industry, as the UK's financial watchdog is currently evaluating a plan that could result in billions of pounds being allocated for consumer compensation.
The appeal is being pursued by British lender Close Brothers and South Africa's FirstRand, both of which are contesting a pivotal judgment made by the Court of Appeal. This ruling mandated that brokers must secure fully informed consent from customers before receiving any commission from lenders.
The implications of this case extend beyond the banks involved, as it could reshape the landscape of motor finance and broker commissions in the UK. With consumers potentially set to benefit from compensation, the financial sector is closely monitoring the proceedings, anticipating how the Supreme Court's decision may influence future practices in motor finance.
