The Court of Appeal found, in favour of the consumers that the payments were not properly disclosed and could, in certain circumstances, amount to bribes, as discussed here and here.
The implications of that decision are far-reaching. Compliance with the regulator’s code of conduct (the FCA handbook) was seemingly not enough to avoid bribes taking place across a large number of consumer transactions. Furniture, appliances, kitchens and bathrooms have typically been purchased on finance terms where an intermediary receives a payment from the lender such that it is not merely the car finance sector which will be analysing the outcome closely; HM Treasury is said to be contemplating retrospective changes to the law depending on the decision.
Whatever outcome is reached, the Supreme Court will have to consider the law on bribery, dishonesty, agency, fiduciary duties, consumer protections under the Consumer Credit Act 1974, the meaning and status of the FCA’s regulations, and contractual matters such as the circumstances in which someone is bound by signing a document which they have not read.
Once the judgment has been released, further analysis and discussion will follow.
Matthew Gillett
28 July 2025