United Kingdom on Consumer Credit

The Court of Appeal ruled that car dealers must disclose commissions from lenders to customers for motor finance deals, impacting lender liability and requiring procedural reviews in the finance industry.

The Court of Appeal's ruling in Johnson v Firstrand mandates transparency in car finance agreements, emphasizing consumer rights to disclosure on broker commissions that may impact loan terms.

The FCA is proposing new regulatory reporting requirements for credit broking, debt adjusting, counselling, and credit information services to improve market monitoring and protect consumers. Aimed at around 30,000 firms, the changes focus on collecting more specific, relevant data to identify higher-risk activities. The consultation closes on 31 October 2024, with final guidelines expected in Spring 2025.