A scandal over mis-sold motor finance has deepened after the Court of Appeal ruled against lenders in a “significant and unexpected” decision that could help to pave the way for billions of pounds in compensation payouts across the industry.
The legal proceedings, which focused on cases brought by consumers against the lenders MotoNovo Finance and Close Brothers, were being monitored by the Financial Conduct Authority, which surprised the car loans industry in January when it started a wide-ranging review of commissions in financing deals dating back to April 2007 following a rise in consumer complaints.
The regulator is considering whether lenders should pay compensation to customers, which analysts have estimated could amount to as much as £16 billion across the industry. The authority said on