The Supreme Court’s long-awaited ruling on the motor finance case “Hopcraft and another (Respondents) v Close Brothers Limited (Appellant)” was delivered on Friday.
In immediate response, the BVRLA hosted a reaction webinar for members on Friday evening. The short recording is now available via the BVRLA website.
Across the three issues considered under the scope of the Supreme Court case, two aspects from the Court of Appeal’s findings in October 2024 were overruled. The third was upheld and related to the amount of commission charged as part of the agreement, which was deemed to be unfair. The full judgement can be accessed via the Supreme Court website.
Over the weekend, the Financial Conduct Authority (FCA) confirmed plans to consult the industry on a redress scheme. The prospect of such a scheme had been announced prior to hearing the Supreme Court judgement, with the upheld item in the ruling giving the FCA suitable grounds to proceed.
The exact nature and reach of the redress consultation is not yet known. It is due to open in October 2025 and run for six weeks. The outcome is due before the end of 2025.
The BVRLA will represent member views as part of that consultation and is already seeking member input to inform that response. Members with any direct input to provide are encouraged to email [email protected] to discuss further with the team.
In the meantime, the BVRLA continues to work to get members the information and clarity they need.
A Frequently Asked Questions document will be provided by the association’s legal counsel, Norton Rose Fulbright, shortly. A second member webinar will take place on Thursday 7th August.
It will address member questions and provide more context on the ruling and potential next steps. Addressing members in the extended session will be industry spokespeople representing lenders, brokers, the regulators, and dealerships. Collectively, they will provide an impact analysis of what the judgement means for BVRLA members, and discuss the potential next steps.
