The Court of Appeal has handed down its latest judgment in Angel & Others v Black Horse Ltd & Others, one of the key cases in the ongoing motor finance commission litigation. If you’ve seen headlines about the case, you may be wondering if it impacts your ability to complain or claim compensation.
In fact, the judgment doesn’t relate to whether consumers are entitled to compensation for mis-sold car finance. Instead, it looks at how the courts should deal with the thousands of claims that have already been brought.
Let’s get into what the decision means in practice.
Does this judgment affect whether I can make a claim about mis-sold car finance?
No.
The Court wasn’t deciding whether lenders acted unlawfully or whether individual customers should receive compensation. Instead, it was considering the best way for the courts to manage large number of similar claims.
The judgment doesn’t take away your right to make a claim if believe you’ve been mis-sold car finance, due to discretionary commission arrangements, high commission, or undisclosed contractual ties, for example.
So, what was the Court deciding?
You’re probably aware that thousands of consumers have started legal claims against motor finance lenders.
The lenders argued that each claim should proceed separately because every finance agreement is different. But consumers believe that many of the important legal questions are shared across multiple cases and should, therefore, be dealt with together where possible.
The Court recognised both points.
It accepted that every claim is different and that whether someone is entitled to compensation will depend on the facts of their individual case. The court may need to consider what the customer was told about commission, for example, of if the lender followed FCA rules when arranging the finance agreement.
That said, the Court also recognised that many of the legal issues are common across thousands of claims. Dealing with those shared issues together can make the litigation more efficient, even though each person’s claim will still need to be assessed individually.
Ultimately, the Court confirmed that consumers can pursue large scale car finance claims (known as the omnibus route) through the courts.
Does this mean every claim will succeed?
No.
The judgment isn’t about whether any particular claimant should win or lose. Ultimately, it confirms that each case will depend on its own facts. Some claims may be stronger than others, depending on the evidence available and the circumstances in which the finance agreement was arranged.
What does this mean for the FCA’s car finance redress scheme?
The FCA industry-wide redress scheme for motor finance commission complaints has been partially suspended due to legal challenges, which the Upper Tribunal is due to consider in late 2026 or early 2027.
The FCA has indicated that it believes its scheme is the fairest and most efficient way to compensate consumers who were mis-sold car finance. And if the scheme goes ahead, it’s expected to provide redress to eligible consumers without the need for most people to go through court proceedings.
The Court of Appeal’s judgment doesn’t change that. In fact, the two processes can work alongside each other. The Court’s decision confirms that litigation remains an option where appropriate, while the FCA’s proposed scheme could provide a simpler route to compensation for many consumers.
Will court action still be necessary?
In some cases, yes. Although the FCA’s compensation scheme is expected to deal with many claims, it’s likely that there will be situations where court proceedings are necessary. For example, it may be needed in cases where:
- A claim falls outside the scope of the FCA scheme
- There’s a dispute about whether someone is eligible for compensation
- A lender rejects a claim
- The compensation offered doesn’t reflect the individual’s circumstances
- There are legal issues that require court action
The Court of Appeal’s judgment recognises that every claim is different, and that there will continue to be cases where the courts have an important role to play.
What happens now?
The car finance compensation landscape is constantly evolving. For many, the FCA car finance redress scheme is expected to provide the simplest route to compensation. If the Upper Tribunal doesn’t uphold the scheme, the FCA has indicated that it will consider how to proceed. For example, it could amend the scheme or consider alternative ways (such as telling lenders to resolve complaints individually) for compensation to be paid.
Whatever happens, one thing is clear: you have options. The Court of Appeal’s latest judgment is a reminder that litigation remains an essential part of the consumer protection framework. Court proceedings may be appropriate where a claim falls outside the FCA scheme, compensation is disputed or further legal action is needed to achieve a fair outcome. Ultimately, the best approach will depend on the individual circumstances of each claim.
Whichever route is right for you, obtaining independent legal advice can help ensure you understand your rights, avoid missing important deadlines and make informed decisions as the position continues to develop.
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