Motor finance commissions: has the dust settled?

14 March 2025 / Eddie Flanagan , Harpreet Sandhu

Issue: 8108 / Categories: Features , Commercial , Consumer , Financial services litigation

With shockwaves from the motor finance commissions case continuing to reverberate, Eddie Flanagan & Harpreet Sandhu explain why it is time for the financial services sector to reflect on compliance & customer trust

The Johnson v FirstRand Bank case ruling on undisclosed motor finance commissions has led to industry shockwaves, and massive compensation provisions, raising concerns over rising regulatory costs.
The judgment highlights the need for transparency in the form of clear disclosure, stronger consumer protections, and practical, balanced regulations.
The wider implications of this case include heightened scrutiny, which challenges financial institutions to adapt while balancing compliance costs and innovation.

In November 2024, Santander UK announced that it had set aside £295m to potentially compensate motor finance customers following the landmark Court of Appeal judgment in the combined cases of Johnson v FirstRand Bank, Wrench v FirstRand Bank and Hopcraft v Close Brothers Ltd [2024] EWCA Civ 1282 (‘Johnson’). This provision significantly impacted Santander’s quarterly profits, which fell to

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

Motor finance commissions: has the dust settled?

The Johnson v FirstRand Bank case ruling on undisclosed motor finance commissions has led to industry shockwaves, and massive compensation provisions, raising concerns over rising regulatory costs.
The judgment highlights the need for transparency in the form of clear disclosure, stronger consumer protections, and practical, balanced regulations.
The wider implications of this case include heightened scrutiny, which challenges financial institutions to adapt while balancing compliance costs and innovation.

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

SourceURL:

Links:

E-newsletter Sign-Up

MOVERS & SHAKERS

Read All

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS

Read All

NLJ this week: Pro bono power without the red tape

Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ

NLJ this week: Small firms call for tech clarity as AI looms

Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ

NLJ this week: Courts walk a tightrope on relocation & abuse

Writing in NLJ this week, Victoria Rylatt and Robyn Laye of Anthony Gold Solicitors examine recent international relocation cases where allegations of domestic abuse shaped outcomes

NLJ this week: Fraud claims climb as courts brace for AI threats

Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes

NLJ this week: AI boom collides with courtroom reality

Artificial intelligence may be revolutionising the law, but its misuse could wreck cases and careers, warns Clare Arthurs of Penningtons Manches Cooper in this week's NLJ

Error message

Motor finance commissions: has the dust settled?

MOVERS & SHAKERS

DWF—19 appointments

Cadwalader—Andro Atlaga

Knights—Ella Dodgson & Rebecca Laffan