CoA/FCA: Marcus Gervase Johnson v Firstrand Bank Limited (London Branch) t/a Motonovo Finance/Andrew Wrench v Firstrand Bank Limited (London Branch) t/a Motonovo/Amy and Carl Hopcraft v Close Brothers Limited

The three appeals, which were heard together, concern motor finance commission, and consider aspects of CCA in a detailed judgment.  The judges hope that their “analysis will provide sufficient guidance for the County Court judges who have to deal with these types of claim on a virtually daily basis, but it may be that on some future occasion it will be felt desirable for the Hurstanger and Wood lines of authority to be considered in greater depth, and for a definitive pronouncement to be made by the Supreme Court about the circumstances in which the payment of a commission by a third party to another person’s agent or fiduciary will give rise to a liability (whether as principal wrongdoer or an accessory) on the part of the payer”.  In January 2024, FCA introduced a pause to the time firms have to provide a final response to customers about motor finance complaints involving a discretionary commission arrangement and extended the pause, in part, so the regulator could account for the outcome of legal cases that may be relevant to its review.  FCA notes the CoA appeal and is carefully considering its decision.