Breaking News: The Supreme Court has delivered a landmark ruling in the ongoing car finance mis-selling scandal, impacting millions of drivers across the UK. This live update details the Supreme Court's decision and its implications for compensation claims related to hidden commission payments made to car dealerships.

For years, concerns have been raised about the practices of lenders and dealerships regarding discretionary commission payments. These payments, often hidden from consumers, were linked to the interest rates charged on car finance agreements. The core question before the Supreme Court was whether lenders were liable for these payments and, if so, whether drivers were entitled to compensation.

The Supreme Court's Ruling: A Complex Outcome

The Supreme Court's judgment is nuanced. While acknowledging that some drivers may be entitled to compensation, the court ruled that lenders are not automatically liable for all past commission payments. The decision hinges on whether the discretionary commission arrangements actually led to higher interest rates for drivers.

Crucially, the Court determined that lenders could be liable if they knew, or should have known, that the commission arrangements resulted in customers paying more for their car finance. However, proving this link is now the responsibility of individual claimants.

What Does This Mean for Drivers?

This ruling doesn't completely shut down compensation claims. Millions of drivers who believe they were mis-sold car finance may still be able to pursue claims, but the process has become more complex. Here's a breakdown:

• Eligibility: You may be eligible if you took out a car finance agreement between April 2008 and January 2020, and your interest rate was affected by discretionary commission payments.
• Proof: You will need to demonstrate that the commission arrangements directly resulted in you paying a higher interest rate than you would have otherwise. This can be challenging and may require expert financial analysis.
• Timeframe: While the Supreme Court's ruling removes automatic liability for lenders, the Financial Conduct Authority (FCA) is continuing to investigate the car finance market and is expected to provide further guidance.

The FCA's Role and Potential Compensation Scheme

The FCA has been actively involved in this case and is now considering the Supreme Court's decision. They are exploring options for a potential redress scheme to compensate affected drivers. While the details are still being worked out, a scheme could streamline the claims process and provide a fairer outcome for many.

Where to Seek Advice

Navigating this complex situation can be daunting. Here are some resources to help:

• Financial Conduct Authority (FCA): www.fca.org.uk
• Citizens Advice: www.citizensadvice.org.uk
• Legal Professionals: Consider consulting with a solicitor specializing in financial mis-selling.

This is a developing story. We will continue to update this page with the latest information as it becomes available.