Insights: Car finance dealer commission – court ruling

Summary of the Car Finance dealer commission appeal ruling
https://supremecourt.uk/uploads/uksc_2024_0157_0158_0159_judgment_2bb00f4f49.pdf
Summary
This UK Supreme Court ruling addressed three conjoined appeals concerning the lawfulness of undisclosed or partially disclosed commissions paid by motor finance lenders to dealers in hire purchase agreements. The appellants—Close Brothers Ltd and FirstRand Bank Ltd—challenged findings that such commissions were bribes or secret profits in breach of fiduciary or “disinterested” duties owed by dealers to customers. The judgment provides a definitive legal stance on fiduciary duties, the tort of bribery, and unfairness under the Consumer Credit Act 1974 (CCA), with significant implications for consumer credit regulation and the motor finance industry.
Key Take Aways

The Court confirmed that motor dealers, when arranging finance, do not automatically owe fiduciary or “disinterested” duties to customers.
The continuing role of the dealer as a ...