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UK Supreme Court overturns ruling on motor finance commissions in win for banks
Published by Global Banking & Finance Review®
Posted on August 1, 2025
1 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 1, 2025
1 min readLast updated: January 22, 2026
The UK Supreme Court reversed a ruling on car finance commissions, easing banks' concerns over redress schemes and stating dealers don't owe fiduciary duties.
LONDON (Reuters) -The United Kingdom's Supreme Court on Friday overturned a landmark ruling on car finance commissions after an appeal by two lenders in a judgment that is set to ease the fears of banks about the extent of a redress scheme.
Supreme Court president Robert Reed said the car dealers who sold the vehicles and arranged the finance did not owe fiduciary duties to customers, reversing a surprise Court of Appeal ruling that sent shockwaves through the motor finance industry.
Reed said the Court of Appeal had "failed to understand that the dealer has a commercial interest in the arrangement between a customer and a finance company."
(Reporting by Sam TobinEditing by William Schomberg)
The UK Supreme Court overturned a previous ruling on car finance commissions, stating that car dealers do not owe fiduciary duties to customers.
Supreme Court president Robert Reed indicated that the Court of Appeal failed to recognize the commercial interest dealers have in the finance arrangements.
This judgment is expected to alleviate concerns for banks regarding their involvement in car finance commissions, allowing them to operate with greater confidence.
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