The Supreme Court heard the case in April, after car finance firms Close Brothers and Motonovo appealed
The Supreme Court will reveal its judgment around hidden car finance commission claims on Friday 1 August at 4.35pm. The Supreme Court heard the case in April, after car finance firms Close Brothers and Motonovo appealed against the Court of Appeal’s surprise ruling, made in October 2024, that all car finance agreements with hidden commission were unlawful.
In October, the Court of Appeal ruled that motor finance firms broke the law by not telling borrowers about broker commission terms. This decision could lead to £44billion in compensation for millions of people.
A Treasury spokesperson said they want a fair decision that gives consumers proper compensation for their losses. They added: “We want to see a balanced judgment that delivers compensation proportionate to losses that consumers have suffered and allows the motor finance sector to continue supporting millions of motorists to own vehicles.
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“It is now appropriate to let the appeals process run its course.” Paul Carlier, the whistleblower who first exposed the scheme in 2016, has accused the Treasury of acting dishonestly to protect motor finance firms at the expense of millions of customers.
Andy Agathangelou, founder of consumer advocacy group Transparency Task Force said: “This is at least the second time the Chancellor of the Exchequer has hoped to intervene, or should I say interfere, with the judicial process surrounding the car finance scandal.
“It’s not a good look for her, because she seems happy to in effect take money out of the pockets of innocent, harmed consumers, and put it in the pockets of banks and car finance companies that have broken the law.”
Martin Lewis, the BBC and ITV star, said: “Three things could happen… 1. Supreme Court upholds Court of Appeal ruling. This shakes everything up in the air & there may be political intervention. If not then most people who’ve had car finance may be due pay-outs, but we don’t know how big. It could see other similar cases come forward too.
“2. Supreme Court rejects Court of Appeal ruling. In which case it’s still likely DCA claims will go ahead via the regulator, but Commission Agreement claims will stop.
“3. Supreme Court comes up with something novel…”