SUPREME COURT CAR FINANCE COMPENSATION RULING – Millions of UK drivers may be owed money over mis-sold motor finance deals
A landmark ruling by the UK’s Supreme Court today could unlock billions of pounds in compensation for motorists who were unknowingly charged hidden commissions on car finance deals.
The case centres on whether earlier court findings—declaring undisclosed commission payments between lenders and car dealers unlawful—should be upheld. If they are, the decision could trigger a flood of claims from drivers across the UK.
With roughly 90% of new cars bought using finance agreements, the financial impact could mirror the scale of the infamous PPI scandal. Analysts estimate that millions of motorists could be entitled to refunds on mis-sold finance stretching back several years.
Thousands have already lodged claims, but a favourable Supreme Court decision would massively expand the pool of eligible drivers.
Despite the potential fallout, car finance companies have insisted they followed industry standards. Nevertheless, major lenders like Lloyds have set aside significant reserves in anticipation of large-scale payouts.
The ruling is expected to bring long-awaited clarity to drivers, lenders, and the government alike, with the car finance sector currently ranking as the UK’s second-largest consumer lending market after mortgages
