UK court rules car buyers can reclaim hidden fees from lenders, potentially costing banks billions.

UK car buyers who took out loans through dealers may reclaim secret fees paid to dealers by finance firms, according to a Court of Appeal ruling. This case, known as PPI 2.0, could cost Lloyds Bank £2.5bn and Santander £1.1bn. Most car purchases in the UK are financed, and the ruling has caused lenders concern. The Supreme Court will hear the appeal on April 1-3, 2025, addressing the need for clear disclosure of fees.

2 months ago
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