1:22 pm, October 28, 2024
Motor finance lenders have been putting the brakes on new proposals as the industry works through the legal implications of offering funding to consumers.
So far three banks have confirmed they will pause lending following the October 25 landmark court ruling. You can read below to see all of firms who have made statements so far.
On Friday, the Court of Appeal ruled in favour of three consumers who are fighting legal cases against Close Brothers and Firstrand Bank.
The complaints say they were mis-sold motor finance but all lost previous hearings at other courts around the country.
MotoNovo Finance
MotoNovo has issued a statement on its website that it is pausing new finance proposals in the light of Friday’s court ruling over commissions.
It became the third motor finance house to pause its new offers.
It said: ‘We’ve temporarily paused accepting new finance proposals while we make important updates to our processes.’
Honda Finance Europe
Honda has told its car dealers that it will pause paying out on car finance and customers who were due to collect their vehicles over the weekend, and had financed their cars via Honda, were told they would not be able to take delivery.
In a bulletin to its dealers this weekend – seen by Car Dealer – Honda Finance Europe operations director Richard Winter told its dealer partners of its ‘difficult decision’.
Winter said Honda would not be paying out on finance agreements currently set up ‘until further notice’.
Close Brothers Motor Finance
Following Friday’s decision, Close Brothers decided to pull support for new finance business.
It announced it would be halting the underwriting of new motor finance and share prices tumbled.
This story was last updated at 13:20 on October 28
