Supreme Court Ruling Is In - What It Means for Car Finance Claims

In April, we wrote about a supreme court case that could affect hundreds of thousands of people who used car finance to buy their vehicles. That case has now been decided by the UK Supreme Court – and while the ruling wasn’t a total win for consumers, it still opens the door to hidden commission claims in some situations.

Here’s what you need to know now that the judgment is in.

🔍 Some Hidden Commission Claims Are Still Eligible

As some predicted, the Supreme Court confirmed that car dealers do not owe you the same duty of care as a financial adviser. That means they’re not automatically required to act in your best interests – and you won’t automatically get compensation just because a commission was paid.

But that doesn’t mean lenders are off the hook. The court also ruled that some commission-based agreements could still be legally “unfair,” especially where:

• The commission was very high

• The customer wasn’t told about it clearly

• The deal created the false impression that the dealer or broker was working on your behalf

So while it’s no longer a blanket issue, there’s still a strong legal route to claim compensation if your finance agreement meets these criteria.

💼 You May Need to Argue Your Case

Because the court said each agreement needs to be assessed based on its specific facts, this means:

• Not every hidden commission claim will succeed

• But where the commission was large and poorly disclosed, claims are still very valid

• Specialist support can help identify whether your case is likely to win

In other words: the legal doors are not wide open, but they are far from closed. If your agreement was unfair, you still have a path to redress.

🚗 DCA Claims Are Still Very Much Alive

While this case focused on hidden commissions generally, Discretionary Commission Arrangements (DCAs) remain a major issue – and they’re already banned.

DCAs allowed dealers to set your interest rate higher to earn more commission. The Financial Conduct Authority (FCA) banned this practice in 2021, and there is no legal debate about whether these were wrong — they were.

This means:

• If you had a DCA, your claim is likely to succeed

• You could be owed thousands in interest and overpayments

• There are already tens of thousands of these claims underway

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💷 What Could You Still Be Owed?

Even under the new ruling, you may be entitled to:

• Repayment of hidden commissions (commonly £500–£1,000+)

• Interest paid on that amount

• In some cases, a partial refund of your loan

And if you had a DCA, your refund could be much higher – potentially covering all excess interest paid over the life of your agreement.

✅ Check If You Can Claim – It’s Still Worth It

While the Supreme Court didn’t give a blanket green light to all hidden commission claims, it made one thing clear:

💡 Lack of transparency can still make your finance agreement legally unfair.

That means you may still be owed money – but the case will need to be assessed carefully. We can help.

If you took out car finance through a dealership in the last 10 years, especially if you weren’t told how commissions worked, it’s worth checking whether you have a case.

It’s free to find out - and only takes a minute.

Make A Car Finance Claim?

You do not need to use a claims management company to make your complaint to your lender. If your complaint is not successful you can refer it to the Financial Ombudsman Service yourself for free.