UK drivers could miss out on £30BILLION in compensation if bungling Rachel Reeves stops payouts for car finance scandal

BRITISH motorists could suffer up to £30 cardinal successful compensation aft Chancellor Rachel Reeves' caller intervention.

The Chancellor’s determination volition look to support banks from mis-selling claims linked to car concern - with the lawsuit reaching The Supreme Court.

The allegations authorities that car dealers received concealed commissions from lenders, starring to higher involvement rates connected loans.

But according to the Daily Mail, Treasury officials reason that the ruling could origin economical harm and interaction centrifugal concern availability.

Two lenders, FirstRand Bank and Close Brothers, are to entreaty the judgement, portion different large lenders similar Lloyds and Santander are besides perchance affected.

Consumer groups person been urging drivers to nonstop complaints to the Financial Ombudsman, but concerns person grown implicit a imaginable user free-for-all starring to marketplace destabilisation.

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Now, Reeves is being accused of giving concern firms a "get retired of jailhouse escaped card," according to insiders.

Her determination could harm user interests and marketplace stability, portion the ruling has already caused chaos successful the car market, with dealerships pausing deliveries to rewrite contracts.

Analysts pass that the government’s involution risks mounting a unsafe precedent, portion user champion Martin Lewis questions the validity of retrospective claims.

Recent information suggests immoderate 80% of vehicles successful the UK are bought done finance, with 2 cardinal cars purchased connected concern successful 2024 and 7 cardinal presently nether concern agreements.

Many of these agreements beryllium to radical connected debased incomes who cannot spend to bargain a car outright.

Treasury figures are acrophobic that upholding the ruling would pb to lenders exiting the market, reducing concern options for consumers and perchance expanding costs.

The Financial Conduct Authority antecedently required dealers to disclose committee payments lone if asked, but the October ruling has forced a hurried rewriting of contracts to explicitly authorities committee amounts.

The Supreme Court appeal, acceptable for April, volition beryllium important successful determining the aboriginal of compensation and the stableness of the centrifugal concern market.

Financial services steadfast Moody's has estimated that if the ruling stands, the payout measure could scope arsenic precocious arsenic £30 billion.