Barings Law, a leading Manchester-based firm, has won a pivotal High Court appeal that could allow thousands of consumers to obtain swifter justice in motor finance commission claims.
The judgment, handed down today, permits more than 5,000 claimants to move forward as part of eight omnibus actions rather than filing separate individual cases.
This major ruling, in the case Stuart Angel and Others v Black Horse Limited and Others, overturns a previous court decision which would have forced every claimant to bring their claim individually—causing likely delays, higher costs, and inconsistent outcomes. By keeping the omnibus cases together in Birmingham, the process should become more efficient and may prompt major motor finance companies such as Black Horse, BMW Financial Services, and Volkswagen Financial Services to consider early settlements.
The origins of the motor finance commission scandal date back to a 2019 investigation by the Financial Conduct Authority (FCA), which found that many car dealers and brokers were inflating interest rates on finance agreements in order to increase commissions. These practices often involved inadequate disclosure to consumers, sparking thousands of complaints and claims.
Craig Cooper, Managing Director at Barings Law, described the ruling as a “major breakthrough” for consumer rights. “This is a huge moment for the thousands of people who have been misled and overcharged by finance companies. Instead of facing costly and time-consuming individual cases, claimants can now pursue justice as part of omnibus actions, making access to justice fairer and more efficient for everyone involved,” he said.
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