M
illions of motorists will not be able to claim car finance compensation after a landmark Supreme Court ruling on Friday. Judges rejected two out of the three cases that argued car dealers should have told customers about commission paid when they took out loans.
It cannot be overstated how significant this ruling was — and how relieved Rachel Reeves will be.
An enormous redress scheme — which could have opened the floodgates to compensation claims worth up to £44 billion — would have seriously tarnished the reputation of our financial services industry. It would also have made Britain a less desirable place to invest and damaged the growth that we so need.
Yet ultimately it would have been you, the consumer, footing the bill through higher interest rates.
