The Supreme Court judgement on motor finance and how it affects Fleet Alliance customers

Last week the Supreme Court ruled on three motor finance cases. The finance involved was for used cars supplied by car dealer finance brokers for a car purchase agreement.

Two of the three cases were dismissed, while the third was upheld by the Supreme Court, ruling that the finance agreement was unfair based on the Consumer Credit Act of 1974.

How does the ruling affect Fleet Alliance customers?

There is no impact on Fleet Alliance customers. We act as a credit broker not a lender or car dealer. We currently arrange rental hire agreements in the business-to-business market rather than the consumer sector, so we fall out of scope.

What about the recently announced FCA redress scheme for finance companies?

The FCA redress scheme involves finance companies and car finance brokers.

Previously Fleet Alliance has arranged some Hire Purchase (HP) and Personal Contract Hire (PCH) agreements so we remain open to the FCA complaints procedure involving commission disclosure, which remains in place until 04 December 2025. Any affected customers will be notified once the FCA supplies further clarity.

“The FCA’s redress consultation is focused on unfair lender-borrower relationships under the Consumer Credit Act, which does not apply to our firm as a broker arranging hire agreements,” commented Head of Compliance, Lynda Gibson.

“Nonetheless, we will continue to follow developments closely and remain compliant with the current FCA procedure based on some of our historic finance agreements. Our Commission Disclosure and consent process remains aligned with FCA expectations and the Consumer Duty,” added Gibson.

Should you wish to discuss the ruling, please arrange a callback here, and a member of our team will be in touch with you shortly.