Treasury intervenes in car finance row as billions in compensation hang in the balance

The UK Treasury aims to intervene in a critical Supreme Court case that risks a mis-selling crisis in the motor finance industry, similar to the PPI scandal. The government emphasizes the need for proportional compensation orders to protect investor confidence, with potential liabilities reaching up to £44 billion. Analysts view the Treasury's involvement favorably, especially for banks in motor finance, although the final decision rests with the Supreme Court judges following a ruling on undisclosed commissions deemed unlawful.

We want to see a fair and proportionate judgment that ensures compensation to consumers that is proportionate to the losses they have suffered.

Clearly positive for the UK banks with motor finance exposure; however, the ultimate outcome will be solely determined by the views of five Supreme Court judges.

Read at Business Matters