Motor finance: Where do the banks, regulator and Treasury stand?

Motor finance lenders are hoping the FCA will shift gears.

The UK banking sector had hoped the Supreme Court’s motor finance ruling would finally switch off the hazard lights and allow lenders to return to business as usual.

The industry was handed a lukewarm win by the highest court in the lan d, who ruled in favour of the banks on two out of three cases.

The move helped overturn the Court of Appeal’s October 2024 ruling that found it unlawful for banks to pay commissions to car dealers without obtaining the customer’s informed consent.

But the top Court found in the case of Johnson, the claimant’s outsized commission of 55 per cent was “unfair” and therefore they were entitled to compensation.

Johnson’s victory opened the door for the Financial Conduct Authority (FCA) to consu