Barings Law’s Landmark Legal Win Puts Justice in the Fast Lane for Thousands in Motor Finance Claims

In a major victory for consumers, Manchester firm Barings Law has won a pivotal High Court appeal that could help thousands of people obtain justice more swiftly in motor finance commission claims.

Barings Law was one of the first law firms to bring complaints in this field, and this judgment is the first decision on the permitted use of omnibus claim forms related to motor finance in general.

The ruling, which was handed down today (March 4^th) allows more than 5,000 claimants to proceed as part of eight omnibus actions rather than having to file separate individual claims.

The High Court’s decision in this appeal case, Stuart Angel and Others v Black Horse Limited and Others, overturns a previous ruling that would have forced each claimant to take legal action alone – creating massive delays, high costs, and inconsistent outcomes.

With the eight cases now remaining in Birmingham, it is anticipated that the process will become more efficient and could steer major finance companies such as Black Horse, BMW Financial Services, and Volkswagen Financial Services towards early settlements.

The motor finance commission scandal was initially uncovered following a 2019 investigation by the Financial Conduct Authority (FCA) which found that many car dealers and brokers were inflating interest rates on car finance agreements to earn higher commissions – often without properly informing customers.

For Barings Law and affected individuals, this is a defining milestone and has forged a path for similar future group actions to be brought forward and given the access to justice they deserve.

The firm’s Managing Director Craig Cooper hailed the decision as a “major breakthrough” in the fight for consumer rights.

“This is a huge moment for the thousands of people who have been misled and overcharged by finance companies,”

Craig said.

“The High Court’s ruling means that instead of facing costly and time-consuming individual cases, claimants can now pursue justice as part of omnibus, making access to justice fairer and more efficient for everyone involved.”

Barings Law initially issued the eight omnibus actions in November 2022. However, the firm encountered a major obstacle the following year when Birmingham County Court decided that the actions could not continue as group actions and ordered that they be split into individual cases.

This decision would have placed an enormous burden on both claimants and the courts, making legal action impractical for many.

Barings Law refused to yield and appealed the decision and as a result, last month the High Court in Birmingham heard the case.

Mr. Justice Ritchie overturned the previous decision, allowing the claims to continue as omnibus actions.

Craig highlighted the importance of this ruling for consumers:

“For too long, people have faced barriers to getting the compensation they deserve. This decision changes that by providing a clear and viable path to justice. It also sends a strong message to motor finance companies that they will be held accountable for their actions,”

he said.

A hard-won moment for consumer rights, the judgment is the first High Court precedent specifically addressing permissibility of omnibus claim forms in motor finance commission claims.

Keeping these claims as omnibus actions means that legal costs can be saved, making it financially viable for people to seek justice.

The decision is expected to have far-reaching consequences, encouraging more law firms to pursue group actions against finance companies engaging in unfair practices.

As Barings Law prepares for the next stage of the legal process, the firm remains committed to ensuring that all affected claimants receive the compensation they deserve. A court date will be set in the near future to determine the next steps.

Craig added:

“As a firm, we are driven by the belief that justice should be accessible to everyone, and I truly believe we have upheld that promise for our clients.

“In a world that moves faster than ever, it’s crucial that the legal system keeps pace – ensuring that modern-day consumers have a fair, affordable, and timely path to stand up for their rights. This victory is not just about one case; it’s about holding powerful institutions accountable and giving people the justice they deserve.”

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