Close Brothers received a boost yesterday after it was granted permission to appeal a court ruling on a car loan that surprised the industry.
The decision gives hope to him and other lenders caught up in the crisis over car dealers paying commissions for selling loans to customers, which could leave them with a billion-pound bill.
The Financial Conduct Authority looked this year to see if some motorists could get a subsidy.
But a separate decision by the Court of Appeal broadened the scope of the tort to include other types of commissions.
Payouts: Close Brothers has won permission to appeal a court ruling on a car loan that stunned the industry.
That sparked fears it could reach a scale similar to the price protection insurance crisis, which cost the industry £50 billion.
Shares in Close Brothers have plummeted, falling by as much as 50 percent following the October court ruling but, after yesterday’s announcement that an appeal to the Supreme Court had been granted, the rose 3.5 per cent, or 8.2p, to 246.2p.
Lloyds, which is facing litigation through its Black Horse car finance arm, rose 2.4 per cent, or 1.28p, to 54.22p.
DIY PLATFORMS Investing
AJ Bell
AJ Bell
Flexible and ready-made accounts
Hargreaves Lansdowne
Hargreaves Lansdowne
Free money making and investment ideas
interactive entrepreneur
interactive entrepreneur
Investment costs from £4.99 per month
Saxo
Saxo
Get £200 back on shopping fees
Trade 212
Trade 212
Free work and no deposit
Affiliate link: If you download a product This Money earns a commission. These prices are selected by our editorial team, because we think they are worth celebrating. This does not affect our independence.
