Lloyds and Close Brothers shares surge after Reeves steps in on car finance case Motor finance giants Lloyds and Close Brothers’ share prices rocketed on Tuesday after Chancellor Rachel Reeves sought to intervene in a court hearing over the potential mis-selling of car loans.
The Supreme Court will rule on an October judgment made in the Court of Appeal that said it was unlawful for car dealers to gain commission from lenders without receiving the customer’s fully informed consent to the payment.
The Supreme Court will hear a case in April where it will decide whether to uphold a landmark ruling on hidden motor finance commission arrangements, made in October.
The submission argued that the case could damage the industry and make it more difficult and expensive to take out car finance loans.
Lloyds and Close Brothers, two other the biggest players in the sector, saw their share prices rise 4% and 21% on Tuesday, respectively.
