Close Brothers has been granted permission by the Supreme Court to appeal the ruling of a motor finance commissions case in October.

The lender can now appeal a result that would see motor finance brokers required to fully inform customers about commissions on car loans, amid a looming FCA redress scheme which could return billions to consumers.

Last month, the FCA urged the Supreme Court to expedite its decision on permission to appeal, after the Court of Appeal ruled it was unlawful for car dealers to receive a commission from banks without obtaining the customer’s informed consent.

The regulator has in 2024 been investigating whether consumers have historically been charged inflated prices for car loans through discretionary commission arrangements.

Close Brothers has issued a statement indicating it would not be commenting on any ongoing appeals process, and that any further announcements would be made as and when appropriate.

On the announcement that Close Brothers has been granted a right to appeal the Supreme Court ruling, Reuters reported that shares in the FTSE 250 listed motor finance provider, which had fallen by around 30% since the October ruling, jumped by 12%.

The Supreme Court has stated that the appeal would be heard in early 2025.

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