The fallout from the car loans scandal has widened after it emerged that Metro Bank had temporarily halted its asset finance lending to review the ramifications of a shock court ruling.
Several lenders have frozen their motor finance operations in recent days, causing chaos in the car loans market, following a Court of Appeal judgment last Friday that set a much higher bar for the disclosure of commission arrangements between credit brokers and lenders than had been required by existing regulations. Lenders were found to be liable for brokers’ lack of transparency.
Metro told The Times that it had “temporarily paused any asset finance lending whilst we reviewed our current systems, process and legal documentation. This process is nearly complete and we anticipate lending will