Premium finance: industry welcomes Supreme Court appeal and hopes for clarity
As evidenced by differing actions by premium finance specialists in recent months there are differing views in the market, but the hope remains that a Supreme Court case on motor finance, to be heard on 1-3 April, can help to bring clarity.
In the judgments for Hopcraft v Close Brothers Ltd, Johnson v FirstRand Bank Ltd, and Wrench v FirstRand Bank Ltd last October, the Court of Appeal decided it was unlawful for the car dealers to receive a commission from lenders providing motor finance without first telling the customer about the commission and getting their informed consent to the payment.
As noted by the Financial Conduct Authority, to obtain informed consent, the borrowers would have to have been told all material facts that
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