The current probe into motor finance and commission payments could have “minimal impact” on finance firms given the kick-back against over-regulation the UK has seen in the past few months.
That’s the view of motor and property finance firm S&U which, in a trading statement, said the UK was now seeing “a more balanced and pragmatic approach to government regulation and policy.”
It said: “The past two months have seen a number of representations from UK Finance, the Finance and Leasing Association (“FLA”) and from S&U to both Government and Parliament designed to ensure a robust and predictable regulatory framework.
“The question does remain as to whether this new encouragement of responsible risk-taking will extend to the Supreme Court, when it reviews last October’s Court of Appeal decision on commission disclosure which has so disrupted the entire motor finance market.
“Again, the signs are cautiously encouraging. The speed with which the Supreme Court is considering the matter and their sanctioning direct representations from the Treasury, the FLA, and the Financial Conduct Authority, speak to a common-sense approach.
My view is that even should the Supreme Court uphold the lower courts’ decision in principle, any ‘harm’ found to have been suffered by consumers will be so marginal as to make demands for redress minimal,” said S&U Chairman, Anthony Coombs, said:
