More than 5,000 drivers will be able to proceed with their motor finance commission claims following a landmark legal case, marking a significant win for consumers seeking justice in the motor finance scandal. Barings Law successfully appealed a previous decision that would have forced each claimant to take legal action separately, leading to the first decision on the permitted use of omnibus claim forms related to motor finance in general.

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, preventing 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, revealing that car dealers and brokers were inflating interest rates on car finance agreements to earn higher commissions without properly informing customers.

Barings Law Managing Director Craig Cooper hailed the decision as a “major breakthrough” in the fight for consumer rights, providing a clear and viable path to justice for those who have been misled and overcharged by finance companies. As the next stage of the legal process approaches, a court date will be set soon to determine the next steps, sending a strong message to motor finance companies that they will be held accountable for their actions.