Millions of motorists will not be able to claim compensation for hidden commissions paid on car loans following a Supreme Court ruling.
The UK’s highest court sided with finance companies in two out of three crucial test cases focusing on commission payments made by banks and other credit providers to car dealers.
The decision reversed earlier rulings by the Court of Appeal that had opened the possibility of large-scale claims for compensation from motorists on a similar scale to the Payment Protection Insurance (PPI) mis-selling scandal.
Delivering the ruling, Lord Reed said car dealers “plainly and properly” had an interest in profiting from the deals.