Victory for motorists as Britons given go-ahead to ‘pursue justice’ and compensation for car finance scandal
More than 5,000 drivers will be able to proceed with their motor finance commission claims following a landmark legal case.
The ruling, handed down earlier this month, marks a significant win for consumers seeking justice in the motor finance scandal.
Barings Law, a Manchester-based firm, successfully appealed a previous decision that would have forced each claimant to take legal action separately.
This breakthrough judgment is the first decision on the permitted use of omnibus claim forms related to motor finance in general.
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The High Court’s decision in the case of Stuart Angel and Others v Black Horse Limited and Others overturns a previous ruling from the Birmingham County Court.
The earlier decision would have forced each claimant to file separate individual claims.
With the eight cases now remaining in Birmingham, the process is expected to become more efficient.
The law firm claimed this could steer major finance companies, including Black Horse, BMW Financial Services, and Volkswagen Financial Services, towards early settlements.
The ruling prevents what would have created massive delays, high costs, and inconsistent outcomes for consumers.
The motor finance commission scandal was initially uncovered following a 2019 investigation by the Financial Conduct Authority (FCA).
The investigation found that many car dealers and brokers were inflating interest rates on car finance agreements to earn higher commissions, which was often done without properly informing customers.
Barings Law Managing Director Craig Cooper hailed the decision as a “major breakthrough” in the fight for consumer rights.
He said: “This is a huge moment for the thousands of people who have been misled and overcharged by finance companies.
“The High Court’s ruling means that instead of facing costly and time-consuming individual cases, claimants can now pursue justice as part of omnibus, making access to justice fairer and more efficient for everyone involved.
“For too long, people have faced barriers to getting the compensation they deserve. This decision changes that by providing a clear and viable path to justice.
“It also sends a strong message to motor finance companies that they will be held accountable for their actions.”
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As Barings Law prepares for the next stage of the legal process, a court date will be set soon to determine the next steps.
Cooper added: “This victory is not just about one case; it’s about holding powerful institutions accountable and giving people the justice they deserve.”