Supreme Court blocks Treasury intervention in motor finance appeal

The Chancellor attempted an intervention late last month, in which she urged them to avoid handing "windfall" compensation to borrowers "harmed" by allegedly secret commission payouts to car dealers who arranged the loans.

Reeves told reporters at the time: "There is nothing pro-consumer about making it harder for people to buy an affordable car for their family. That would be bad for working families."

The Supreme Court’s decision to reject the application now means the FCA – which has previously argued that, should the appeal fail, it could have the potential to "destabilise" the banking industry in the UK – is now the only third party which will be able to make submissions in the case.

This case follows a Court of Appeal judgment in October which determined that paying a "secret" commission to car dealers was unlawful. Close Brothers and FirstRand are hoping to overturn that case at the Supreme Court in a hearing from 1 to 3 April.