Company
Johnson v Firstrand Bank Ltd (London Branch) (trading as Motonovo Finance) and other cases [2024] EWCA Civ 1282
Miss Hopcraft, Mr Wrench, and Mr Johnson were unsophisticated consumers who used car dealers to arrange finance for car purchases. The dealers acted as credit brokers and received undisclosed or partially disclosed commissions from the lenders (FirstRand and Close Brothers) for introducing the finance agreements. In Hopcraft, no disclosure was made about the commission paid by Close Brothers to the dealer. In Wrench, only vague references to a possible commission were made in FirstRand’s standard terms, which were not expected to be read by the consumer. In Johnson, the dealer provided a misleading document suggesting impartial advice would be given across a panel of lenders, when in fact there was a contractual tie obliging the dealer to offer FirstRand’s products first.
Each of the claimants brought proceedings in the County Court against the defendant lenders seeking, among other things, the return of the commission paid to the credit brokers. The County Court transferred the appeals up to the Court of Appeal (Civil Division)
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