Tag Archives: Motor Finance

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 ...

Arranging motor finance is the biggest bugbear for customers when it comes to buying a car. That’s the key finding of the latest Motors Consumer Insight Panel which found 28& of customers rated motor finance as the most dreaded aspect of their showroom experience, closely followed by interacting with salespeople (26%) and trading-in their car (24%). Other friction points included ...

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 ...

Consumer spending is expected to remain subdued in the coming months despite the recent cut in interest rates. That’s the view of the Finance & Leasing Association (FLA), which said over 40% of motor finance houses expected some increase in business in the coming months. The consumer new car finance market reported new business by value in December 15% higher ...

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 ...

The Financial Ombudsman is gearing up to charge claims management firms £250 to refer a case from 1 April. Professional claims management representatives accounted for 47% of claims it looked at between April and December 2024. Professional representatives will receive £175 back if the case outcome is in favour of the consumer. It will remain free for consumers to refer ...

  In this edition of MILS Legal Surgery, Professor Henry Blair takes a close look at three big-ticket issues that dealers should have on your radar in the year ahead. Q: What’s new with Johnson and the discretionary commissions mess? A: Not long ago, the Court of Appeal’s decision in Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank Ltd ...

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 ...

Dealers can expect a ‘challenging’ year for motor finance in 2025, according to the latest forecast from the Finance & Leasing Association (FLA). Last year motor finance business reached £38.9bn, a similar amount to 2023 but this year could be different with 60% of finance houses not expecting an increase in sales for the year. “The outlook for 2025 remains ...