Laura WilesThe Supreme Court has granted Close Brothers and FirstRand Bank permission to appeal in the cases of Johnson v FirstRand Bank t/a Motonovo Finance, Wrench v FirstRand and Hopcraft v Close Brothers. The cases all relate to financially unsophisticated customers who had engaged car dealers to get them finance for second-hand cars.
In October, the Court of Appeal granted the consumer appeals, ruling it unlawful for motor finance brokers to receive commission from lenders without obtaining the informed consent of the customer. It then refused the subsequent application for permission to appeal. However, the Supreme Court has quickly allowed the appeal, granting permission less than three weeks after requested to do so.
The FCA has welcomed the speed of the Supreme Court’s decision, having written a letter early in December to ask that it made a decision quickly on the permission to appeal, and if granted, to determine the substantive appeal as soon as possible. The regulator continues to consider whether to formally intervene in the case to share its expertise with the court.
The appeals have not yet been listed, but are anticipated to be heard by the Supreme Court before the end of March 2025.