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A class action was filed at the Competition Appeal Tribunal last month against finance houses Black Horse, MotoNovo and Santander
The action is being led by Enfield Labour councillor Doug Taylor, who has instructed Scott+Scott UK LLP to handle the claims. Scott+Scott is working with a barrister team from Brick Court Chambers and Matrix Chambers.
The clam relates to historic discretionary commission charged before it was banned in 2021.
It claims that over one million consumers paid too much for their motor finance to the tune of £1bn between 1 October 2015 and January 2021.
The UK Financial Conduct Authority (FCA) launched an investigation into discretionary commissions and banned them from 28 January 2021 on a forward looking but not retrospective.
The claims are to recover these losses on behalf of consumers who entered into finance agreements for used cars with Black Horse, Santander or MotoNovo before 28 January.
Those who did so between 1 October 2015 and 27 January 2021 will be automatically included in the class unless they choose to opt-out.
The Competition Appeal Tribunal will make a decision on whether the claim goes forward or not.
Santander said: “We do not comment on actual or potential claims”.
A Blackhorse spokesperson said: “We are committed to ensuring customers have clear and transparent information so they can make informed decisions about the products they choose. Following the FCA’s motor finance market review, new rules were set out for the industry in 2021, which we have implemented. We continue to comply with regulatory requirements that apply in relation to the payment of commission and the disclosure of commission to customers.”
Full details of the claim are here