Supreme Court Rejects Treasury Intervention in Motor Finance Case

The UK Supreme Court has denied the Treasury's request to intervene in a significant case regarding the car finance scandal, which could cost lenders billions in compensation. The ruling comes after the Court of Appeal determined that car dealers, acting as credit brokers, unlawfully received commissions without customer consent. The Treasury had argued that intervention was necessary to maintain the competitiveness of Britain's regulatory landscape and to prevent a potential exodus of companies from the sector. Following the Supreme Court's decision, shares in lenders like Close Brothers and Lloyds Banking Group fell, reflecting investor concerns about the financial implications of the ruling. The court has allowed only the Financial Conduct Authority and the National Franchise Dealers Association to intervene, while rejecting requests from other parties. The case is set for hearing in early April, where the court will decide on the legal merits of the appeal.