header-logo header-logo

Forecourt finance: what’s next?

Ceri Morgan analyses the response to lender liability in motor finance broker commission cases
  • In Hopcraft, the Court of Appeal found lenders liable for undisclosed commissions paid to secondhand car dealers arranging finance for their customers.
  • The decision was appealed to the Supreme Court, with the Financial Conduct Authority intervening to express concerns that the Court of Appeal’s approach went ‘too far’.
  • The article explores the market response to the Court of Appeal’s decision, the current state of the law in terms of the duties owed by motor dealer brokers, and the potential impact on the separation of powers debate.

The Court of Appeal’s decision in Johnson v FirstRand Bank Ltd (London Branch) (t/a MotoNovo Finance) [2024] EWCA Civ 1282 (Hopcraft) has sparked significant debate within the legal and financial sectors. The ruling, which has since been appealed to the Supreme Court, found lenders liable for undisclosed (or only partially disclosed) commissions paid to secondhand car dealers who were also arranging the finance for their customers.

The

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

NLJ Career Profile: Stephen Ward, The Barrister Group

NLJ Career Profile: Stephen Ward, The Barrister Group

From mowing lawns to life at the Bar: Stephen Ward reflects on an unconventional career

Clarke Willmott—Ben Loosemore

Clarke Willmott—Ben Loosemore

Commercial property partner joins Clarke Willmott in Southampton

Ellisons—Robert Tiffen

Ellisons—Robert Tiffen

Robert Tiffen joins Ellisons as Partner in growing Norwich office

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

back-to-top-scroll