12:02 pm, December 11, 2024
Close Brothers has been granted permission by the Supreme Court to appeal the result of the motor finance commissions case in October.
The firm announced to the London Stock Exchange this morning that it had been notified of this decision.
On October 25, the Court of Appeal ruled in favour of consumers regarding commission disclosures for motor finance and on November 22 Close Brothers Limited submitted an application to appeal this decision.
The complaints was previously tried at other courts around the country but all claims of mis-selling lost.
However, the judges decision in October found ‘a broker could not lawfully receive a commission from a lender without obtaining the customer’s fully informed consent to the payment’.
The announcement to states: ‘On 22 November 2024, Close Brothers Limited (“CBL”) submitted an application for permission to appeal the Court of Appeal’s judgment against CBL in respect of the “Hopcraft” motor finance commissions case.
‘CBL has, today, been informed that permission to appeal has been granted by the Supreme Court in respect of the “Hopcraft” case.
‘Close Brothers Group plc will not be commenting further on an ongoing appeals process, and any further announcements will be made as and when appropriate.’
Shares in Close Brothers rose more than 6% on Wednesday, and Lloyds was up by more than 4%.
The Financial Conduct Authority said it welcomes the ‘swiftness’ of the Supreme Court’s decision to hear an appeal.
‘We previously wrote to the Supreme Court asking it to decide quickly whether it will give permission to appeal and, if it does, to determine the substantive appeal as soon as possible,’ the regulator said.
‘This is because of the potential impact of any judgment on the motor finance market and the many consumers who rely on it.’
It said it was considering whether to intervene in the case by sharing expertise.
Adrian Dally, director of motor finance at the Finance & Leasing Association, said: ‘Permission to appeal is very good news indeed.
‘The expedited process will give the motor finance sector the needs certainty it needs.’
