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14 March 2025 / Eddie Flanagan , Harpreet Sandhu
Issue: 8108 / Categories: Features , Commercial , Consumer , Financial services litigation
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Motor finance commissions: has the dust settled?

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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 £143m

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