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The Guardian - UK
The Guardian - UK
Business
Kalyeena Makortoff Banking correspondent

Consumers win UK car finance case that could lead to billions in compensation

Cars parked at a car storage facility
The cases are linked to arrangements in which lenders gave car dealerships and brokers the power to set interest rates on car loans, and earn higher commission as that number grew. Photograph: Joe Giddens/PA

Consumers have won a landmark car finance mis-selling case that could pave the way for companies to be forced to pay billions of pounds in compensation to borrowers.

On Friday, judges from the court of appeal ruled in favour of three borrowers whose cases were merged earlier this year, saying it was unlawful for lenders to have paid a commission to car dealers without the borrowers’ knowledge.

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