HM Treasury and FCA seek to intervene in Motor Finance Supreme Court Appeals

In what may be considered a surprise development, both His Majesty’s Treasury (‘HMT’) and the Financial Conduct Authority (‘FCA’) have sought permission to intervene in the appeals of the Johnson and Others v FirstRand Bank Limited and Others [2024] EWCA Civ 1282 Judgment (‘Johnson and Others’), to be heard by the Supreme Court.

To date, the Johnson and Others Judgment has been widely recognised as having positively impacted the many hundred-thousand ongoing motor finance commission claims and complaints.

It is understood that HMT seek permission to intervene, on the basis that the Supreme Court Proceedings ‘has the potential to’:

‘Adversely affect the United Kingdom’s reputation as place to do business,’
‘Adversely impact the motor finance / car industry.’
‘Limit how much lenders will lend’
‘Put smaller lenders at risk of exiting the market’
‘Potentially negatively impact other areas of the financial services sector’

Taking a different stance, the FCA submits that:

Given [the FCA’s] statutory responsibilities with respect to consumers, firms (both motor dealer brokers and lenders) and the operation of the market more generally, as well as its ongoing work in this area, the FCA respectfully considers it vital for it to be able to participate in these proceedings.

Going further, the FCA:

“respectfully submits that it will be able to provide the Court with significant, independent and non-duplicative assistance in the resolution of these appeals”

and

“respectfully suggest[s] that [their] presence at the hearing may be of assistance to the Court in answering any questions about the regulatory framework … as well as being able to provide an up-to-date account of the market-wide investigatory work if that would be of assistance”.

The FCA’s submissions, dated 14 January 2025, can be accessed here.

Looking ahead, it appears the Supreme Court have not yet decided whether both HMT and the FCA will be granted permission to intervene but may decide soon, considering the Supreme Court Hearing is listed for 1 – 3 April 2025.

Author – Harry Grimshaw, Motor Vehicle Finance Litigation Manager