Supreme Court Expected to Rule on £44bn UK Car Finance Compensation

Martin Lewis has advised motorists to take no immediate action ahead of the UK Supreme Court’s anticipated ruling on a car finance mis-selling scandal involving hidden commissions paid to car dealers by lenders. The Court of Appeal previously ruled these commissions unlawful, potentially entitling millions of drivers to compensation amounting to £44 billion. Lewis outlined three possible outcomes: the Supreme Court could uphold the ruling, leading to widespread payouts and possible political intervention; it could reject the ruling partially or fully, with compensation still possibly disbursed through the regulator; or it could issue an unexpected decision. He warned that involving claims management companies prematurely might lead to claimants losing a significant portion of potential compensation. Lewis also expressed concern that if the ruling is upheld, it could have far-reaching economic consequences, potentially restricting credit availability and affecting the broader financial sector. The Treasury has indicated it seeks a fair decision but has not commented on speculation about government intervention.