A claimant has expressed his disappointment following a Supreme Court ruling that prevents millions of motorists from seeking compensation for undisclosed commissions on car loans.
Andrew Wrench, from Trentham, Stoke-on-Trent, encountered an unsuccessful outcome in his legal challenge against finance companies after identifying a “buried” commission payment within his contract two years prior.
He conveyed a sense of being “let down” by Friday’s verdict, which overturned prior court decisions that had deemed the payments to car dealerships unlawful.
Stephen Haddrill, Director General of the Finance and Leasing Association, previously stated that the court’s “excellent” judgment “restored certainty and clarity” to the automotive market.
“The process has been a rollercoaster… I was somewhat apprehensive anticipating the outcome,” Mr. Wrench told BBC Radio Stoke.
He further commented: “I felt deflated and somewhat disheartened. It requires significant circumstances to affect me negatively, but after dedicating over two years to this legal pursuit, I genuinely believed [the judges] would recognize the validity of our claims.”
Mr. Wrench characterized the undisclosed commissions as “deceitful” and advocated for greater transparency from firms regarding these payments.
“I will refrain from engaging with certain finance companies in the future, as I believe they have failed to uphold the interests of consumers,” he asserted.
Mr. Wrench was among the three claimants involved in Friday’s court proceedings, and one of the two whose cases were dismissed.
While the undisclosed payments were not deemed unlawful, the judgment left open the potential for compensation claims related to larger commissions, which the Supreme Court identified as potentially unfair.
Following the ruling, the Financial Conduct Authority (FCA) announced that a consultation regarding eligibility criteria and compensation amounts would commence in October, with initial payments projected for the following year.
The regulator indicated that victims are likely to receive less than £950 per deal under the proposed compensation scheme.
Mr. Wrench urged car finance companies to proactively contact consumers to offer apologies and compensation, while affirming that he remained satisfied with his decision to pursue legal action.
“My primary motivation was not financial gain, and I would undertake the same course of action again,” he stated. “I firmly believe that I have contributed to uncovering significant truths.”
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