REG - S & U PLC - Supreme Court motor finance ruling

S&UAnnouncement

04/08/2025 07:00

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RNS Number : 8022T  S & U PLC  04 August 2025

RNS Number: 8022T

S & U PLC

4 August 2025

S & U PLC

("S&U" or "the Company")

 

Announcement following Supreme Court motor finance ruling of 1 August 2025

 

S & U PLC, the specialist financier, and parent of Advantage Finance, the
motor finance business, welcomes last week's Supreme Court decisions on motor
finance commissions as a "victory for common sense".

 

On Friday 1(st) August 2025 the Supreme Court rejected the Court of Appeal's
decision of October 2024 that motor dealers owed a fiduciary duty to borrowers
when selling cars and arranging their finance, and that the payment of
commission by motor finance lenders to them or other brokers constituted a
"bribe". The Supreme Court, however, did uphold the lower court's view that
commission paid by lenders which was inflated relative to the total cost of
credit or which misled unsophisticated customers, may lead to an "unfair
relationship" under section 148 of the Consumer Credit Act. Advantage notes
that the FCA has announced its intention to consult on a redress scheme which
covers both DCA arrangements and cases possibly involving an unfair
relationship. Advantage reiterates that it has never used discretionary
commission arrangements and feels very confident that its longstanding quality
of customer service will mean that any unfair relationships found would be
minimal.

 

Commenting on the decision, Karl Werner, Chief Executive of Advantage Finance,
said: "The Supreme Court's decision provides legal clarity for the motor
finance industry and is entirely consistent with the level and quality of the
service Advantage has been proud to provide its customers for over 25 years.
We therefore welcome this ruling and the firm platform it gives us to continue
the strong and consistent recovery we are enjoying this year."

 

Anthony Coombs, Chairman of S&U, concluded: "This decision is a victory
for common sense. It will significantly boost confidence throughout the motor
finance industry and benefit lenders and consumers alike in attracting
investment and increasing competition. As such, it is entirely consistent with
the Treasury's recent emphasis on regulation which encourages growth and which
will, in the words of the Financial Conduct Authority, "ensure the integrity
of the motor finance market, so that it works well for future consumers."

 

S&U will issue a Trading Update on 12 August 2025.

 

 Enquiries                                     S&U plc        c/o SEC Newgate

 Anthony Coombs

 Financial Public Relations                    SEC Newgate    020 7653 9848

 Bob Huxford, Molly Gretton, Harry Handyside

 Broker                                        Peel Hunt LLP  020 7418 8900

 Andrew Buchanan, Oliver Jackson

 

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