Mis-sold Car Finance Treasury Looks To Intervene In Mis-Sold Motor Finance Claims By Comms Team. Published 21st January 2025. Share on LinkedIn Share with Twitter Share with Facebook Home Blog Treasury Looks To Intervene In Mis-Sold Motor Finance Claims Reports suggest that Chancellor Rachel Reeves is planning to intervene to protect car finance lenders from the potential fallout of the ongoing car finance mis-selling cases. The Treasury is urging the Supreme Court to consider the economic impact of upholding the Court of Appeal’s decision, warning that it could lead to substantial pay-outs for consumers. But what does this mean for consumers affected by these mis-sold car finance agreements? Coby Benson, Solicitor at Bott and Co, provided the following insight: “The Treasury is asking the court to carefully consider the economic ramifications of upholding the Court of Appeal’s decision, describing the judgments as ‘an abrupt change in the law’ and somewhat of a surprise. We respectfully disagree. The Johnson decision does not change the law; rather, it affirms the law as it has been understood for over a century. The Court of Appeal referenced cases dating back to the 1800s, as well as more recent cases from 1998, 2015, 2016, and 2021, to support its decision.” The cases now before the Supreme Court involve individuals who took out agreements between 2014 and 2017, a time when the legal framework surrounding motor finance was already well-established. Lenders and brokers have long been aware of the risks involved, but many continued to operate in a way that exposed them to potential claims. They must have concluded, either deliberately or naively, that the rewards outweighed the risks. It’s also worth noting that the suggestion that motor finance brokers believed FCA compliance would protect them from liability elsewhere is simply not accurate. Brokers, like any business, must comply with multiple regulations beyond just the FCA rules. This includes the Consumer Credit Act 1974, Data Protection Act 2018, Money Laundering Regulations, Consumer Rights Act 2015, and more. These laws exist to protect consumers, and compliance with the FCA’s rules does not automatically guarantee adherence to all relevant legislation. The Treasury’s position is seeking to give wrongdoers a ‘get out of jail free card’ and will merely serve to encourage corporations to commit large scale breaches of the law at the expense of consumers. At Bott and Co, we stand firmly with consumers and believe that those who have been wronged must be fairly compensated.