Millions of motorists in the U.K. could be entitled to sizeable compensation payments if the country’s Supreme Court decides Friday that certain hire-purchase agreements were unlawful
ByPAN PYLAS Associated Press
LONDON — Millions of motorists in the United Kingdom could be entitled to sizeable compensation payments if the country’s Supreme Court decides Friday that certain hire-purchase agreements were unlawful.
The three judges are set to rule on the legality of apparently hidden commission payments made to car dealers made before 2021.
The outcome could have major consequences for the financial services sector, which has been rocked over the past decade by a series of scandals, notably in relation to the improper selling of payment protection insurance, or PPI, on loans.
The Financial Services Authority, the industry regulator, told the Supreme Court last year that almost 99% of the roughly 32 million auto finance agreements entered into since 2007 involved a commission payment to a broker.
Some dealers received a bigger commission if they were able to secure a higher interest rate on the loan. These so-called discreti