Tag Archives: Commission

Inchcape has flagged up to investors the possibility of having to make payments for historical motor finance commission arrangements for its UK business before it was sold to US dealer group Group 1. In results filed today it referenced the FCA review into historical motor finance commission arrangements announced in January 2024. This investigation is ongoing. In the meantime, there ...

Black Horse owner Lloyds has set aside a further £700m for potential costs associated with motor finance Commission payments which will be heard in the Supreme Court in April. This brings the total set aside to £1.15bn, including the £450m set aside in 2023. Lloyds set there was a lot of uncertainty surround the amount to be paid. In its ...

Barclays has set aside £90m for historic motor finance commission redress. The figure was detailed in its financial results for 2024 published today. Barclays said it ceased operating in the motor finance market in late 2019, although historical operations before this time may be in scope of any potential FCA consumer redress scheme. “Taking into account the information currently available, ...

The current probe into motor finance and commission payments could have “minimal impact” on finance firms given the kick-back against over-regulation the UK has seen in the past few months. That’s the view of motor and property finance firm S&U which, in a trading statement,  said the UK was now seeing “a more balanced and pragmatic approach to government regulation ...

Chancellor Rachel Reeves has intervened in the motor finance commission case in a bid to protect banks and finance houses from paying out hundreds of millions of pounds in compensation to consumers. The FT reported that the Treasury is seeking permission to intervene in the Supreme Court arguing that the case had the “potential to cause considerable economic harm and ...

The Financial Conduct Authority (FCA) has given finance houses until December 2025 to respond to motor finance commission complaints It said the extension will help prevent “disorderly, inconsistent and inefficient” outcomes for consumers and firms. “We have extended the time firms have to respond to complaints about motor finance agreements not involving a discretionary commission arrangement (DCA). “Firms now have ...

The High Court has found in favour of the Financial Ombudsman Service in a review of its decision to uphold a complaint relating to a discretionary commission arrangement (DCA) in a motor finance agreement. The Court dismissed all three grounds of appeal brought by Barclays Partner Finance. The Judge found that the Financial Ombudsman had interpreted FCA rules and the ...

Following on from the seismic changes brought on by the decision in Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank Ltd and Hopcraft v Close Brothers Ltd. [2024] EWCA Civ 1282, dealers and finance institutions have been holding their breath to see if the matter would proceed to the Supreme Court. In what appears to be an early Christmas ...

The Supreme Court announced today that it was going to allow an appeal the Court of Appeal;s judgement on motor finance commission cases. The Court of Appeal had upheld an appeal against Close Brothers, First Rand Bank and MotoNovo Finance, ruling that motor dealers acting as credit brokers have a duty of loyalty to their customers. It ruled that a ...

MILS Legal Services Director Christopher Baylis addresses questions surrounding the Court of Appeal’s decision in Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank, and Hopcraft v Close Brothers [2024] EWCA Civ 1282, and how Johnson interacts with the Digital Markets, Competition and Consumers Act (DMCCA).  Q: What’s the biggest takeaway from Johnson?  A: The landmark decision in Johnson has far-reaching ...