Car dealers and finance companies are reeling from an appeal court decision in favour of consumers, which ruled that ‘secret’ commission rates paid to dealers are against the law in the UK.
A number of lenders have temporarily suspended activities while they assess or reconfigure their processes, meaning some customers buying on finance have been told they can’t have the new cars they had already arranged to collect until the suspensions are lifted.
Lenders including Close Brothers, Honda Financial Services and Zopa are among those who temporarily closed their books to new business following the ruling, but none are expected to be out of action for more than a few days.
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