Drivers handed green light to ‘pursue compensation’ amid car finance scandal

Drivers have been granted the green light to seek ‘justice’ and compensation over the car finance scandal. Following a significant legal development, over 5,000 drivers will now be able to move forward with their claims regarding motor finance commissions.

Manchester’s Barings Law firm triumphed in overturning an earlier ruling that would have required individual legal actions from each claimant. Managing Director Craig Cooper celebrated the ruling as a pivotal moment for consumer rights, reports Birmingham Live.

Craig Cooper declared: “This is a huge moment for the thousands of people who have been misled and overcharged by finance companies. 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.”

He further commented on the significance of this milestone, said: “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.”

Cooper concluded by emphasising the broader implications of the victory: “This victory is not just about one case; it’s about holding powerful institutions accountable and giving people the justice they deserve.”

The campaign group Consumer Voice brought to light issues regarding advance commissions through submissions in an effort to be heard in an impending supreme court case that is pivotal for determining redress related to the motor finance controversy.

While the Supreme Court declined Consumer Voice’s request earlier this week to submit evidence during the hearing, co-founder Alex Neill highlighted the serious implications of advance commissions. Neal, who previously held a position at the consumer organisation Which?, said: “We have seen reports of car dealerships being paid nearly £15m in advance commissions.”

He elaborated on the dismay consumers feel towards these and other questionable practices that have resulted in the financial detriment of countless diligent individuals, noting: “Consumers are rightly angered by these and other practices that led to millions of hardworking people being overcharged. Car finance customers have also told us that they want firms held to account and that can only be done by bringing claims against lenders for the civil bribery they initiated.”