Motor finance: A timeline of the legal saga so far

0:00
You might be wondering what is the
0:01
Supreme Court ruling on motor fines all
0:03
about and where did the high-profile
0:05
case come from in the first place? Well,
0:08
it all started with three individuals
0:09
who brought legal action against Close
0:11
Brothers and South African First Ran
0:13
Bank over secret commissions in the
0:15
motor finance agreements. Amy Hoffr sued
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Close Brothers while Marcus Johnson and
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Andrew Wrench sued First Rang Bank.
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Originally, each of these cases like
0:25
many more were issued to local courts
0:27
across England. However, it was these
0:29
three cases that ended up at the Court
0:31
of Appeal, the second highest court, and
0:33
were merged together for a hearing. In
0:36
October, the Court of Appeal ruled that
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the lenders had not sought their
0:39
consumers consent for commission
0:41
payments. The ruling started to spread
0:43
like wildfire, and by the afternoon, we
0:45
were updating our story with the news as
0:48
close Brother shares were dropping and
0:49
dropping fast. The ruling from the
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second highest court in the land opened
0:53
the lending sector to numerous legal and
0:56
financial issues, which is why the
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lenders at the heart of this case issued
1:00
their notice to appeal promptly. The
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only route for an appeal was with the
1:03
Supreme Court, which agreed to hear the
1:05
appeals, and the full hearing kicked off
1:07
in April. But in the background, lenders
1:10
exposed to motor financing lendings
1:12
began to set aside millions and in some
1:14
cases billions of pounds for a possible
1:17
future redress scheme. The government
1:19
was aware of the potential 30 billion
1:21
pound bill impact on the lending sector
1:24
and actively sought to participate in
1:26
Supreme Court hearing. However, the
1:28
Treasury's attempt to intervene was
1:30
rejected with the government trying to
1:32
appear pro business and the lending
1:34
sector threatened a pull out of the
1:35
finance and future car purchases. The
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ruling was closely watched not just by
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those affected by the own agreements but
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by the city and the markets which had
1:45
their eyes peeled on Supreme Court. The
1:48
Supreme Court accepted two of the
1:49
appeals in favor of the lenders. But
1:52
despite what the market's reaction to
1:53
this morning suggests, the court has
1:55
kept the doors open on this legal battle
1:58
by siding with consumers in the Johnson
2:00
case. With a city regulator revealing on
2:02
Sunday that consulting on a redress
2:04
scheme tipped to be worth between 9
2:06
billion and 18 billion, this debacle is
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far from over. For more on this story,
2:11
head to citym.com.
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[Music]

Motor finance: A timeline of the legal saga so far

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Motor finance: A timeline of the legal saga so far

City AM