Barings Law, a prominent Manchester-based law firm, has achieved a significant victory in the High Court, which could accelerate justice for thousands of consumers involved in motor finance commission claims. The judgment, issued today, allows more than 5,000 claimants to pursue their cases as part of eight omnibus actions, rather than filing individual lawsuits.
The ruling comes in the case Stuart Angel and Others v Black Horse Limited and Others, overturning a prior court decision that would have required claimants to bring their cases separately. This previous ruling had the potential to cause delays, increase costs, and lead to inconsistent outcomes for claimants. By consolidating the claims into omnibus actions, the process is expected to be more efficient, possibly prompting major motor finance companies, such as Black Horse, BMW Financial Services, and Volkswagen Financial Services, to settle claims more quickly.
The motor finance commission scandal dates back to a 2019 investigation by the Financial Conduct Authority (FCA), which uncovered that many car dealers and brokers had inflated interest rates on finance agreements to boost commissions. These practices were often not fully disclosed to consumers, leading to thousands of complaints and claims.
Craig Cooper, Managing Director of Barings Law, called the ruling 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,” he said. “Instead of costly and time-consuming individual cases, claimants can now pursue justice more efficiently as part of group actions, making access to justice fairer for everyone involved.”
Barings Law initially filed the eight omnibus actions in November 2022, but Birmingham County Court ruled that the claims could not proceed as a group and should instead be filed individually. This decision would have significantly increased the time and costs for those seeking redress. Barings Law appealed, and Mr. Justice Ritchie’s ruling today allows the claims to proceed as part of the group actions.
Cooper emphasized the broader importance of the decision, pointing out that it establishes a clear path for consumers who have faced barriers to compensation in the past. “For too long, people have faced hurdles in receiving the restitution they deserve,” he said. “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.”
This judgment marks the first High Court precedent regarding the use of omnibus claims in motor finance commission cases, and its implications could be far-reaching. By allowing group actions to move forward, legal costs are contained, making it more feasible for consumers to challenge finance providers and seek compensation. Barings Law expects that the ruling will inspire other law firms to pursue group actions in similar cases of unfair practices.
Barings Law will continue advocating for the affected claimants, working to ensure that those impacted by alleged finance misrepresentations receive fair compensation. A further court date will be scheduled soon to determine the next steps in the case.
“As a firm, we believe justice should be accessible to all,” Cooper concluded. “Today’s victory isn’t just about one case; it’s about challenging powerful institutions and securing the justice people deserve.”
