Commission Disclosure Case Review - March 2024

Motor Finance Claims - Commission Disclosure

• Wrench v Firstrand Bank (2024)

• Hurst v BMW Financial Services (2024)

Caselaw in this area is prevalent and still mounting, and we have two further cases to report. The first one is Wrench v Firstrand Bank Ltd, and the other is Hurst v BMW Financial Services both cases were appealed by the Lenders and succeeded.

Both cases deal with complaints raised by customers alleging that that they weren’t informed that commission would be payable, or information was buried amongst the documentation and not drawn to customers’ attention, or not told of the amount of commission, all of which effectively alleging and equating to there being a secret commission.

Both of these cases should go some way in defending claims brought against Firms by customers or claims management companies.

These cases are good for lenders, brokers and dealers to pushback against claims made by customers or cmcs on unfair relationship and fiduciary duty in identifying the role of a broker and a dealer in a motor finance transaction, but also distinguishing the facts of the case to that of Wood & Pengelly – a mortgage broker being different to that of a dealer broker where there is no duty on a motor dealer or broker to give single minded loyalty to a customer.

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If you would like to find out more about these cases or support in putting together responses to any CMC claims or FOS, please do get in touch.