Car finance scandal payout fears as row drags on

Published On Dec 8, 2024, 7:10 PM

Marcus Johnson's case regarding unfair commission payments in car financing has led to a Court of Appeal ruling that could result in compensation for many car buyers. The ruling emphasizes that lenders must provide 'fully informed consent' for commission payments to dealers. This has raised concerns within the car and finance industries, as estimates suggest the total compensation could reach up to £30 billion. Lenders have paused new deals and set aside significant funds for potential settlements. However, future payouts remain uncertain as the defendants seek a review from the Supreme Court, which has previously ruled in favor of banks in similar cases.