A closer look at the cases behind the ruling

Kevin Peachey

Cost of living correspondent

The Supreme Court is considering whether nearly all hidden commission arrangements in the car finance market were unlawful.

Judges are considering three test cases, including that of Marcus Johnson, 34-year-old, from Cwmbran, Torfaen.

Johnson said that when he bought a blue Suzuki Swift in 2017 he simply did not know that the commission had been paid, although the lender said he had signed a document.

The solicitors in these three cases say that the commissions amounted to bribes at common law.

At the heart of this case is the duty of the motor dealer. When selling the car, the dealer is trying to seal the best deal for the business.

But in a previous judgement, the Court of Appeal effectively said that when the dealer then became a broker for the loan, it had a duty to act solely in the best interests of the buyer, not the lender.

The car finance sector insists it complied with the law as it was understood, and as regulation required.