The Supreme Court will issue a ruling on the £44 billion car finance commission case this Friday, 1 August 2025, at 4:35pm.

The UK Supreme Court is preparing to deliver a huge landmark decision this Friday, 1 August, that could send shockwaves through the automotive and financial industries. At the centre of the case is the legality of commission structures in car finance agreements a ruling that could pave the way for up to £44 billion in compensation claims.

The ruling, expected at 4:35pm on 1st August could shape the future of consumer rights in the car finance sector and beyond. It involves two major appeals that challenge whether consumers were treated fairly when car dealers received secret or undisclosed commissions from lenders.

What’s the Case About?

The appeals, led by Close Brothers and MotoNovo Finance, aim to overturn an October 2024 Court of Appeal decision that found car dealerships acted unlawfully by failing to fully disclose the amount of commission they earned. The court ruled that this lack of transparency breached fiduciary duties and violated consumer protection law.

Should the Supreme Court uphold that decision, it will confirm that millions of car finance customers were misled potentially entitling them to compensation. Claims could total between £30 billion and £44 billion, making it one of the most significant financial rulings in UK legal history.

“It is outrageous and an affront to the rule of law that the Treasury is even considering giving motor finance giants a free pass at the expense of millions of hard-working consumers.”

Managing Director at Courmacs Legal – Darren Smith

What This Means for Consumers

If you took out a Personal Contract Purchase (PCP) or Hire Purchase (HP) car finance deal between 2007 and 2021, and were not clearly told about commission payments to the broker, you could be eligible for a refund.

At Courmacs Legal, we specialise in handling these claims. Our expert legal team is ready to assess your case and guide you through the process with clarity, transparency, and no hidden fees.

What Happens Next?

The Financial Conduct Authority (FCA) has already announced it will consult on a redress scheme following the ruling. They plan to publish next steps within six weeks. If the Supreme Court upholds the consumer-friendly ruling, this scheme could streamline the claims process for affected drivers.

However, there’s also speculation that the government may intervene to limit financial exposure for lenders, potentially through emergency legislation. Chancellor Rachel Reeves has reportedly reviewed the legal implications and could act to cap compensation pay-outs.

Will the Supreme Court Overturn the Appeal?

There are three likely outcomes:

• Ruling Upheld: Fiduciary duties confirmed. Mass claims proceed. FCA launches a redress scheme.
• Ruling Overturned: Commissions may not need to be disclosed in full. Compensation claims could be limited.
• Compromise Decision: A nuanced ruling redefines duties or limits how losses are calculated.

Regardless of the outcome, Courmacs Legal will continue to advocate for consumer rights and ensure eligible clients receive fair treatment and compensation.

To Summarise…

Issue	Potential Outcome
Broker fiduciary duty (a legal and ethical obligation to act in the best interests of their client)	Likely confirmed or refined
Full commission disclosure	Required if ruling upheld
Industry compensation exposure	£30–44 billion at stake
FCA response	Redress scheme expected within six weeks
Government action	Potential law changes to limit liability
Consumer options	Claim with legal support from Courmacs Legal

Why Choose Courmacs Legal?

At Courmacs Legal, we’ve been preparing for this moment. Our dedicated legal team has deep expertise in financial mis-selling and consumer claims. We offer:

• No Win, No Fee support
• Transparent communication with no hidden charges
• Personalised legal guidance tailored to your situation

If you believe you were mis-sold a car finance agreement due to undisclosed commissions, we’re here to help. Start your claim today — our experienced team is ready to fight for the compensation you deserve.