Fri, 01 Aug 2025

Fri, 01 Aug 2025 Millions denied car finance payouts after Supreme Court ruling

The Supreme Court partially upholds an appeal from lenders, who had faced potentially paying compensation to millions of motorists.

* The Supreme Court has ruled that millions of motorists cannot claim compensation for hidden commissions paid on car loans.
* The decision reverses earlier court rulings that had opened up the possibility of large-scale compensation claims, similar to the PPI mis-selling scandal.
* However, many drivers who took out a certain type of finance deal could still be in line for payouts.
* The ruling affects around 9 in 10 car sales, with about two million new and used cars bought each year under motor finance.
* Some affected by discretionary commission arrangements could qualify for redress, potentially leading to payments worth £5-13 billion or more.
* Experts estimate that total compensation payments could reach £10bn.
* The FCA will confirm whether it will consult on a redress scheme before markets open on Monday 8 August.
* The UK's financial regulator has said it will "take time to digest the judgement" and work with industry to determine the impact of the ruling.
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