Explainer

UK Court to Decide If Car Buyers Deserve Billions in Compensation

A lot of British car dealers also arrange the loans that customers take out to buy them.Source: Bloomberg

It’s long been common practice for lenders to pay UK car dealers a commission to sell their loans to motorists, often without their knowledge.

That changed in October, when an appeals court ruled that these commissions were unlawful. Banks caught off guard have been bracing for billions of pounds in potential damages claims ever since.