23 May 2025 / Ceri Morgan

Issue: 8117 / Categories: Features , Company , Liability , Financial services litigation , Consumer , Constitutional law

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.

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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

If you are not a subscriber, subscribe now to read this content

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Forecourt finance: what’s next?

MOVERS & SHAKERS

WSP Solicitors—David Ashcroft & Jessica O’Shea

Duxton Hill Chambers—Lucas Bastin KC & Joshua Hiew

Gilson Gray—Gregor Duthie & Stephen Forsyth