‘Absolute transparency’ required on true cost of loans following landmark car finance…

2 August 2025, 23:20

Kavon Hussain, the lawyer representing the two drivers whose cases were dismissed at the Supreme Court, insisted “absolute transparency” is crucial going forward where car finance is concerned.

It follows Lord Reed handing down the ruling on Friday, as he said the car dealer “was at all times pursuing its own commercial interest in achieving a sale of the car on profitable terms”.

Speaking following the verdict, he said “transparency is key” for car finance loans, adding that he and his clients are “disappointed” in the justices’ decision.

Speaking outside the court, he said: “The lenders and car dealers now, if you go for a loan, usually on the first page they will say what the commission is that’s being paid to the brokers. They don’t hide it any more.

“In a sense, that’s some good that’s come out of this. They’re very keen to make sure consumers and even businesses know exactly how much commission they are paying.

“There has to be absolute transparency on the true cost of the loan. If there’s commission, make the client aware of it, don’t hide it somewhere on page 15.

“Transparency is key.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), said: “We are pleased with the Supreme Court’s decision in relation to the FCA’s motor finance review.

“As the consumer-facing part of the sector, NFDA wants to see the regulator act fairly to ensure that UK consumers receive a satisfactory result. This has been achieved today.

“As we move forward from this case, NFDA will continue to provide support to its members ensuring that the UK has a healthy and functioning motor retail market.”

Lord Reed said on Friday: “In reaching the opposite conclusion, the Court of Appeal failed to understand that the dealer has a commercial interest in the arrangement between the customer and the finance company.

“The court mistakenly treated the dealer as acting solely in the interests of the customer once the customer had chosen a car and agreed a price.”