The Supreme Court partially sided with car buyers in a case concerning undisclosed lender commissions to dealers, limiting potential payouts from an estimated £40bn to a still-substantial £5bn-£13bn. While the court rejected claims based on a 'fiduciary duty', it upheld one case where commission payments were deemed unfair. This ruling, however, leaves open the possibility of further redress claims concerning Discretionary Commission Agreements, prompting the Financial Conduct Authority to consider a compensation scheme. The government's likelihood of intervening has decreased.
Prepared by Christopher Adams and reviewed by editorial team.
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