The Supreme Court announced today that it was going to allow an appeal the Court of Appeal;s judgement on motor finance commission cases.
The Court of Appeal had upheld an appeal against Close Brothers, First Rand Bank and MotoNovo Finance, ruling that motor dealers acting as credit brokers have a duty of loyalty to their customers.
It ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.
The court ruled that 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.
Finance houses have put aside huge sums to compensate consumers for mis-selling.
Close Brothers submitted an application for permission to appeal the Court of Appeal’s judgment against CBL in respect of the “Hopcraft” motor finance commissions case.
The company told investors today that it had been informed that permission to appeal has been granted by the Supreme Court in respect of the “Hopcraft” case.
“Close Brothers will not be commenting further on an ongoing appeals process, and any further
Adrian Dally, director of Motor Finance at the FLA said: “Permission to appeal is very good news indeed. The expedited process will give the motor finance sector the needs certainty it needs.”
