The Government considers legislating to overrule the Supreme Court’s imminent decision in the motor finance cases

We have previously discussed the upcoming Supreme Court judgment in the combined motor finance cases of Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank Ltd, and Hopcraft v Close Brothers Ltd and the FCA’s potential redress scheme. Latest reports suggest that judgment will be handed down later this week, at 4.35pm on 1 August 2025. 

Whilst we will analyse the much anticipated judgment with interest, national press reports, including The Guardian, suggest that its effect may be short-lived.

Following the Treasury’s unsuccessful attempt to intervene in the Supreme Court case, the Government is understood to be considering legislation to govern the handling and disclosure of commission arrangements to borrowers and potentially applying this legislation retrospectively – the Treasury’s key concern being that if the Supreme Court upholds the entirety of the Court of Appeal’s decision, firms could face a potential £44billion in liability. 

Whilst legislation could significantly reduce the financial impact of the judgment on motor finance firms, it would be a controversial move – the Treasury could be seen to be stepping firmly on the toes of the independent Judiciary. 

Our financial services experts will be reviewing the judgment later this week with interest and will post key updates on this blog. You can also keep up to date by joining our financial services mailing list.

This article was written by Matthew Pegler and Hannah Miller.