Secret Commissions Trigger Potential Market Meltdown for UK Car Lenders

As lenders face an avalanche of compensation claims over a brewing motor finance scandal, Lars Mucklejohn asks whether the industry is headed for a PPI-scale disaster. Motor finance providers are scrambling to avoid a full-blown market meltdown after a London court ruling on “secret” car loan commissions sparked chaos across the sector this week.

A Court of Appeal ruling last Friday has forced some major lenders to pause new business, shake-up their systems and push for urgent talks with government. Judges ruled that a broker could…