The UK’s Supreme Court has recently completed a crucial hearing with far-reaching implications for missold motor finance and PCP contracts. This landmark decision could potentially provide over £30 billion in compensation to impacted consumers.
Between 1st and 3rd April 2025, the court reviewed appeals in a case regarding undisclosed commissions paid to lenders and brokers on PCPs (Personal Contract Purchases). The verdict, to be announced at a later time, will establish a significant precedent for regulating consumer finance and make decisions on consumer protection.
The hearing pertains to three cases that were previously ruled upon in the Court of Appeal in October 2024 — Hopcraft v Close Brothers and Wrench and Johnson v FirstRand Bank (MotoNovo).
The Court of Appeal has declared that brokers are not allowed to receive commission payments from lenders unless the customer has given their informed consent. This ruling was contested by Close Brothers and MotoNovo, who appealed to the Supreme Court.
The main concern lies in whether consumers were informed about brokers receiving commission and the amount they received, prior to finalizing their car financing agreements. A considerable number of individuals were not aware of the brokers’ monetary motivations to promote pricier options, ultimately causing a substantial increase in their monthly payments.
WHAT’S NEXT FOR THE MISSOLD MOTOR FINANCE SCANDAL?
While the final decision of the Supreme Court is still pending, it is anticipated to be announced within the next few months. If consumers are successful, it could open the path for significant compensation and establish a precedent that holds lenders responsible for missold motor finance and undisclosed commissions.
Should the court rule in favour of the lenders, there may still be alternative paths for consumers to seek compensation, such as filing individual claims or seeking action through the FCA. Taking action promptly is key.
SUBMIT YOUR DETAILS ON OUR FORM TODAY TO FIND OUT IF YOU’RE ELIGIBLE FOR COMPENSATION
If you entered into a vehicle loan agreement, regardless of how long ago it was, you may be entitled to receive a significant amount of money in reimbursement. However, as the deadlines for making claims loom near, it is imperative that you act promptly and do not risk losing out!
