https://www.lse.co.uk/news/SUS/fca-to-await-supreme-court-call-before-taking-motor-finance-next-step-ksebo09c829ao3t.html
https://www.telegraph.co.uk/business/2025/03/11/millions-car-finance-customers-to-get-compensation/
On the face of it, the garages acted as a credit broker and as such should have gone with the lowest price not the highest commission. That's a fair principle.
Reality is, water flows downhill.
From my understanding, the commission would likely have been used to raise the amount of the loan offset to reduce the price, keeping the overall cost of car+loan package constant, while allowing the customer to borrow more and buy a better car.
Secondly, why restrict this principle purely to car loans? Everything is bought on credit these days. The current claim is going to rock the retail car finance and retail banks lending industries; can you imagine how applying this principle to retail sales as a whole would devastate the entire retail economy? From a claim of maybe twenty billion GBP, we'd be going to ten or a hundred times that.
So it's easy to understand why a labour chancellor goes in to protect the loan sharks!
Reality is with a couple of presses of the buttons on your smartphone, you can get a quote to compare with what is being offered buy the car salesman. Does the state, from lawmakers to lawyers, need to interfere in the workings of this capitalist economy?
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