Car finance scandal: Treasury not allowed to intervene

The Treasury won’t be allowed to step in and intervene in the ongoing car finance case after their request was turned down by the Supreme Court.

The government asked to become involved in January, following concerns that the case could make car loans more expensive and harder to get.

This case has become quite the hot topic, with an appeal from finance firms set to be heard in April.

What’s the car finance mis-selling scandal?

The case, first ruled on in October, revealed that many drivers were unaware of dealer commissions linked to their loans.

Some dealers were shown to have been earning more for loans with higher interest rates (called ‘discretionary commission agreements’ or DCAs).

What’s happened so far?

The Court of Appeal previously ruled that it was unlawful for lenders to pay a dealer commission without the customer's consent.

They also said affected customers should be compensated, which could lead to payouts totalling £30bn.

What’s the Treasury said?

The Treasury’s said they respect the Supreme Court's decision and will keep a close eye on the case.

They want to make sure customers are treated fairly while also supporting the motor industry.

Applications from the Finance & Leasing Association trade body and compensation adviser Consumer Voice have also been turned down.

Think you were mis-sold car finance?

If you think you might have paid too much for your car finance because you weren’t told about commission, follow the steps outlined in this blog to complain.

Complaints can be submitted until 4 December 2025 – it’s free and you might get some money back.