The lenders are at the Supreme Court today aiming to overturn a ruling that could cost the industry billions of pounds in compensation over motor finance.
The case will start in London this morning and run for three days. Today, the Justices will listen to the Close Brothers and Firstrand Bank’s arguments for their application for appeal.
Lawyers for the consumer groups and the interveners, the Financial Conduct Authority (FCA), and the National Franchise Dealers Association will present their arguments on Wednesday and Thursday.
Background
Last October the Court of Appeal handed down a judgment that turned the lending sector on its head in a case targeting Close Brothers and South African Firstrand Bank.
The court ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.
As a result, in order for consent, the consumer would need to be told all material facts that might affect their decision, including the amount of the commission and how it was to be calculated.
The Court of Appeal ruled that did not happen in those cases.
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