On 25 October 2024, an unexpected Court of Appeal ruling held that motor dealerships, acting in their capacity as credit brokers, owed a “disinterested duty” and an “ad-hoc fiduciary duty” to source a finance deal that serve the best interests of their customers. Where lenders pay commission for finance products sold, the Court determined that unless that commission was fully disclosed, a customer could not have given informed consent to the finance agreement.

While likely to be many months away, the decision may lead to a requirement for brokers and/or lenders to make redress payments to customers, akin to payments made for mis-sold
payment protection insurance (PPI).

Defendants in the Court of Appeal cases await the outcome of any decision by the Supreme Court, should permission to appeal be granted.

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