Major car finance scandal update with drivers given go-ahead to ‘pursue compensation’

Drivers have given the go-ahead to ‘pursue justice’ and compensation for the car finance scandal. More than 5,000 drivers will be able to proceed with their motor finance commission claims following a landmark legal case.

Barings Law, a Manchester-based firm, successfully appealed a previous decision that would have forced each claimant to take legal action separately. Barings Law Managing Director Craig Cooper hailed the decision as a “major breakthrough” in the fight for consumer rights.

He said: “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.

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“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 added: “This victory is not just about one case; it’s about holding powerful institutions accountable and giving people the justice they deserve.”

The concerns over advance commissions were raised in filings on behalf of the campaign group Consumer Voice, as part of its attempt to intervene in a pending supreme court case that will be key to determining compensation in the motor finance scandal.

While Consumer Voice’s attempt to present its evidence at the supreme court hearing was rejected earlier this week the group’s co-founder, Alex Neill, said the use of advance commissions was “cause for concern”.

Neill, a former executive at the consumer group Which?, said: “We have seen reports of car dealerships being paid nearly £15m in advance commissions.

“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.”