Barings Law, a leading Manchester-based firm, has won a pivotal High Court appeal that could allow thousands of consumers to obtain swifter justice in motor finance commission claims.
The judgment, handed down today, permits more than 5,000 claimants to move forward as part of eight omnibus actions rather than filing separate individual cases.
This major ruling, in the case Stuart Angel and Others v Black Horse Limited and Others, overturns a previous court decision which would have forced every claimant to bring their claim individually—causing likely delays, higher costs, and inconsistent outcomes. By keeping the omnibus cases together in Birmingham, the process should become more efficient and may prompt major motor finance companies such as Black Horse, BMW Financial Services, and Volkswagen Financial Services to consider early settlements.
The origins of the motor finance commission scandal date back to a 2019 investigation by the Financial Conduct Authority (FCA), which found that many car dealers and brokers were inflating interest rates on finance agreements in order to increase commissions. These practices often involved inadequate disclosure to consumers, sparking thousands of complaints and claims.
Craig Cooper, Managing Director at Barings Law, described the ruling as a “major breakthrough” for consumer rights. “This is a huge moment for the thousands of people who have been misled and overcharged by finance companies. Instead of facing costly and time-consuming individual cases, claimants can now pursue justice as part of omnibus actions, making access to justice fairer and more efficient for everyone involved,” he said.
The firm initially issued the eight omnibus actions in November 2022, but Birmingham County Court subsequently ruled that the claims could not continue on a group basis and should instead proceed as individual actions—a decision that would have significantly increased both time and cost for those seeking redress. Barings Law appealed, and Mr. Justice Ritchie has now overturned that decision, clearing the way for the claims to remain part of the group proceedings.
Cooper highlighted the broader significance of this ruling for consumers, noting that it establishes a clear and financially viable route for those who have traditionally encountered barriers to compensation. “For too long, people have faced hurdles in receiving the restitution they deserve. This ruling offers a viable path to justice and sends a strong message to motor finance companies that they will be held accountable for their actions,” he added.
As the first High Court precedent that addresses the use of omnibus claim forms in motor finance commission claims, the ruling is expected to have far-reaching implications for the industry. By allowing group actions to proceed, legal costs can be contained, making it more realistic for consumers to challenge and seek compensation from finance providers. Barings Law anticipates that the decision will encourage other law firms to pursue group actions in cases where unfair practices have taken place.
The firm will continue to advocate on behalf of the thousands of claimants involved, seeking to ensure that everyone affected by these alleged finance misrepresentations receives fair compensation. A further court date will be scheduled in the near future to determine next steps.
“As a firm, we are driven by the belief that justice should be accessible to all, and this ruling supports that principle,” said Cooper. “It proves that in an ever-accelerating world, the legal system must adapt to offer consumers a fair, affordable, and prompt way to stand up for their rights. Today’s victory isn’t just about one case; it’s about challenging powerful institutions and securing the justice that people deserve.”