The UK Supreme Court today begins hearing a pivotal motor finance case that could have major implications for lenders, car dealers, and consumers alike. The hearings, scheduled to run until 3 April, involve appeals in Johnson v FirstRand Bank Limited, Wrench v FirstRand Bank Limited, and Hopcraft v Close Brothers.
The cases centre on the duties owed by motor finance dealers to consumers, with the Court set to clarify how these responsibilities were handled during the sale of car finance agreements.
The Financial Conduct Authority (FCA) and the National Franchised Dealers Association (NFDA) are both intervening in the case, with the NFDA’s involvement confirmed in February. The FCA has been advising both consumers and lenders throughout the ongoing wave of motor finance complaints.
Today’s proceedings mark a significant moment, as the Supreme Court is expected to review legal arguments that could potentially overturn or narrow some of the more controversial findings from the Court of Appeal.
A ruling in favour of consumers could pave the way for a redress scheme across the motor finance sector. However, the FCA has said it will not announce any decision on compensation or redress until at least six weeks after the Court delivers its judgment.
