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Car finance scandal payout fears as row drags on

December 9, 2024
in Business
Reading Time: 2 mins read
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Car finance scandal payout fears as row drags on
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Kevin Durkin from HD Law, who represents Mr Johnson, says the Court of Appeal decision was clear, and redress payments should start to be made where necessary.

Failing to do so means “justice delayed is justice denied”, he says.

“The bottom line in all of this is that it is the customer who continues to suffer financially,” he says.

However, the story is far from over.

David Postings, chief executive of UK Finance, which represents lenders, told MPs last week that “the ruling is subject to different interpretations”.

The defendants in the case involving Mr Johnson, Mr Wrench and Ms Hopcraft have requested the Supreme Court take a look at it.

Banks have seen success before at the Supreme Court regarding mass compensation claims. In 2009, it found in their favour over the issue of bank overdraft charges.

However, banks did have to pay out billions of pounds over the PPI (payment protection insurance) scandal.

The City regulator, the Financial Conduct Authority, has written to the Supreme Court requesting a speedy decision on motor finance, given the potential impact on the market and consumers.

In the meantime, it will face questions – starting when leading figures, including chief executive Nikhil Rathi, appear before the Treasury Committee on Tuesday.

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