Brexit and the waning days of the United Kingdom

[Tamas]

Car financing. Having reviewed a bit how most people are being taken for a ride (haha) by dealers selling them PCP, I think this could be a big deal:

The Court of Appeal has upheld an appeal against Close Brothers, First Rand Bank and MotoNovo Finance ruling that motor dealers acting as credit brokers have a duty of loyalty to their customers.

The decision could pave the bay for billions of pounds to be paid out to customers although Close Brothers has said it is going to the Supreme Court to appeal the decision.

The Court of Appeal ruled that a broker could not lawfully receive a commission from the lender without obtaining the customer's fully informed consent to the payment.

The court ruled that in order for consent, the consumer would need to be told all material facts that might affect their decision, including the amount of the commission and how it was to be calculated.

In a statement Close Brothers said: "Close Brothers disagrees with the Court's extension of the existing case law in this area and intends to appeal this decision to the UK Supreme Court.

"The Court has determined that motor dealers acting as credit brokers owe both a disinterested duty and a duty of loyalty ("fiduciary duty") to their customers.

"This sets a higher bar for the disclosure of and consent to the existence, nature, and quantum of any commission paid than that required by current FCA rules, or regulatory requirements in force at the time of the case in question."

Stephen Haddrill, Director General of the FLA, said: "This is a significant and unexpected judgment, the implications of which stretch far beyond the motor finance sector, making it an issue that demands the immediate attention of the Financial Conduct Authority (FCA)."

The FCA said: "In January, we introduced a pause to the time firms have to provide a final response to customers about motor finance complaints involving a discretionary commission arrangement (DCA).

"We did this to prevent disorderly, inconsistent and inefficient outcomes for consumers and knock-on effects on firms and the market while we review whether motor finance customers have been overcharged because of the past use of DCAs.

"In September, we extended the pause, in part, so we could account for the outcome of legal cases that may be relevant to our review.

"We note the Court of Appeal judgment on 25 October 2024, in Johnson v Firstrand Bank, Wrench v Firstrand Bank and Hopcraft v Close Brothers Ltd, and are carefully considering its decision."

BTW all you need to know about the industry is that the site I sourced this from (after seeing it discussed on Reddit)  is supposed to be one for the motor industry and yet it is so absolutely riddled with ads including constant popups that I felt like I was back in the early 2000s again.

I have read on Reddit that a few other lenders have paused doing more care financing deals while they work out what's what.

I guess also all you need to know about this industry is that a requirement (that may still get overturned at the Supreme Court) to be slightly more transparent sends such shockwaves and panic.

[Admiral Yi]

1979 interview with Anthony Blunt.

[Sheilbh]

Obviously lots in the budget and will post an article at some point. But an example of why I have some sympathy for the criticism of too much process and quangocracy and failing upwards/jobs for the boys.

The government have set up a new Office of Value for Money (), its chair is, I'm sure, excellent. But he will be on a day rate of about £1,000 for one day a week and a team of twenty civil servants. He will have to fit this in around his commitments on the board of HS2 - and will also presumably be on top of his £300k+ salary (and last year's bonus of £168k) for his work on the stalled refurbishment of Parliament.

[Tamas]

Obviously lots in the budget and will post an article at some point. But an example of why I have some sympathy for the criticism of too much process and quangocracy and failing upwards/jobs for the boys.

The government have set up a new Office of Value for Money (), its chair is, I'm sure, excellent. But he will be on a day rate of about £1,000 for one day a week and a team of twenty civil servants. He will have to fit this in around his commitments on the board of HS2 - and will also presumably be on top of his £300k+ salary (and last year's bonus of £168k) for his work on the stalled refurbishment of Parliament.

Maybe some or all of those positions are just pay-out places for chums, they don't mean they expect actual work to be done.