The number of people able to claim over secret car finance commission arrangements could effectively be halved, after the UK’s highest court agreed to hear an appeal from loan providers following a landmark case which laid the groundwork for potentially billions of pounds in payouts.
In October, the UK’s Court of Appeal ruled that all commissions must be fully disclosed to the consumer before a finance contract can be entered. This effectively makes Discretionary Commission Arrangements (DCAs) – which were banned three years ago, and saw lenders paying car dealers commission without the knowledge or consent of the buyer – illegal in the first instance, alongside any type of finance involving undisclosed commission.
As such, anyone having signed up to such an agreement in recent memory could be entitled to compensation.
Read Article