Reshaping Consumer Rights in Motor Finance Mis-Selling
The Johnson v FirstRand Bank Ltd case is now heading to the Supreme Court, a pivotal development that could reshape how PCP claims and car finance mis-selling cases are handled. At its heart, this case addresses the non disclosure of broker commissions. A practice that has left millions of car finance consumers unknowingly overcharged in their car finance agreements.
With the Supreme Court hearing scheduled for 1st to 3rd April 2025, the legal community and consumer rights advocates are closely watching for the potential ripple effects on PCP agreements and broader car finance claims.
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Live in the UK and had a car on finance?
✅ If you’ve had a car, van or motorbike on finance between 2007 and 2021.
There is a 99% chance you have a PCP claim.
How the Supreme Court Appeal Impacts PCP Claims
PCP (Personal Contract Purchase) claims focus on finance agreements where consumers were not informed about broker commissions, creating unfair financial relationships.
The Johnson case has already established a strong precedent by ruling that undisclosed commissions breach the Consumer Credit Act 1974.
If the Supreme Court upholds the Court of Appeal's decision, it will solidify protections for consumers, ensuring:
Transparency in Agreements:
Brokers and lenders will be required to disclose commissions.
Fair Financial Relationships:
Consumers will no longer face inflated costs due to hidden payments.
While the appeal progresses, the Court of Appeal’s ruling remains binding. This means consumers with PCP agreements can still rely on this judgment to pursue compensation.
Key Details of the Supreme Court Appeal
Case Title: Johnson v FirstRand Bank Ltd (t/a MotoNovo Finance)
Case Number: UKSC/2024/0158
Hearing Dates: 1st to 3rd April 2025
Justices Presiding:
Lord Reed
Lord Hodge
Lord Lloyd-Jones
Lord Briggs
Lord Hamblen
Court of Appeal Judgment Date: 22nd November 2024
The Court of Appeal previously ruled that undisclosed commissions paid to brokers created an unfair financial relationship. This decision has already empowered many consumers to claim compensation for mis-sold PCP agreements and car finance deals.
Why This Case Matters for Car Finance Claims
The Johnson case addresses systemic issues in the motor finance industry that go beyond PCP agreements. Hidden commissions have affected millions of car finance agreements, inflating costs for consumers while benefitting brokers and lenders.
For car finance claims, the key takeaways are:
Consumers’ Right to Know:
Hidden commissions undermine trust in financial agreements.
Legal Accountability:
Brokers and lenders can be held liable for failing to disclose these commissions.
Compensation Opportunities:
Consumers who were unaware of these payments may be eligible for redress.
Banks Are Fighting Back: The Barclays Appeal
The Johnson case isn’t the only legal battle banks are appealing. Barclays has recently challenged a High Court decision upholding a Financial Ombudsman Service (FOS) ruling against them. This trend signals that financial institutions are pushing back against consumer-focused rulings in an attempt to limit their liability.
To learn more about the Barclays appeal and its implications,
read our article:
What Happens Next?
The Supreme Court’s decision, expected later in 2025, could either:
Uphold the Court of Appeal’s ruling: Cementing protections for consumers and reinforcing legal standards for transparency in finance agreements.
Overturn the ruling: Changing the legal landscape for PCP and car finance claims.
Regardless of the outcome, Sentinel Legal remains committed to helping consumers pursue their claims. Our expert team will continue to leverage the strongest legal arguments to secure compensation for unfair financial agreements.
Frequently Asked Questions
1. What are PCP claims?
PCP claims focus on finance agreements where consumers were not informed about broker commissions, which created unfair financial relationships.
2. Can I make a PCP claim during the Supreme Court appeal?
Yes. The Court of Appeal ruling remains enforceable, meaning consumers can still rely on it to pursue compensation.
3. What happens if the Supreme Court overturns the Johnson case?
Even if overturned, many PCP and car finance claims remain valid under existing consumer protection laws.
4. How can I check if I’m eligible for a car finance claim?
Contact Sentinel Legal for a free assessment, or review your finance agreement for signs of hidden commissions.
Listen to the Podcast with Kevin Durkin
Gain deeper insights into the Johnson v FirstRand Bank case and its journey through the courts. Kevin Durkin, who represented Mr. Johnson in the Court of Appeal and will continue to do so in the Supreme Court, shares his expert analysis and behind-the-scenes experience.
🎙️ Watch the full podcast episode here:👉 Podcast with Kevin Durkin on YouTube
🎙️ Watch the full podcast episode here:👉 Podcast with Kevin Durkin on YouTube
Sentinel Legal: The Experts in PCP and Car Finance Claims
With over 900 claims filed in court, Sentinel Legal has secured millions of pounds in compensation for clients affected by motor finance mis-selling. Our team is at the forefront of this fight, ensuring consumers benefit from landmark cases like Johnson.
If you suspect your PCP or car finance agreement was mis-sold, don’t wait. Take the first step towards justice today.
Make Your Car Finance Claim Today
Live in the UK and had a car on finance?
✅ If you’ve had a car, van or motorbike on finance between 2007 and 2021.
There is a 99% chance you have a PCP claim.
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