Chancellor Rachel Reeves' intervention in car loans case rejected
The UK Supreme Court has rejected Chancellor Rachel Reeves' attempt to intervene in a landmark case over controversial car loans, allowing the court to proceed with an appeal by finance firms against a ruling that it was unlawful for lenders to pay commissions to dealers without customers' consent. The case has significant implications for the motor sector, with estimates suggesting that the industry could be forced to pay out as much as £30bn in compensation. The FCA has set itself a deadline of 2025 to resolve all cases related to secrecy and payments.
- This decision highlights the complexities of regulatory oversight in the financial sector, where multiple stakeholders are involved and competing interests must be balanced.
- How will the Supreme Court's ruling ultimately impact the financial stability of UK banks and lenders, particularly in light of potential compensation payouts that could reach £30bn?