17 October 2025
The proposed £11bn redress scheme following the Supreme Court’s motor finance rulings is analysed in this week’s NLJ by Fred Philpott of Gough Square Chambers
He questions whether consumers truly suffered loss, noting that hire-purchase interest was transparent and unrelated to dealer commissions—unlike PPI.
Around 44% of borrowers could receive £700 each, yet Philpott warns of legal challenges over whether any wrongdoing exists under s 404, FSMA 2000.
Regulators’ clampdown on claims-management firms may limit their gains, while lenders gain short-term certainty but face the risk of consumers returning to court for more.
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