header-logo header-logo

Home Login E-newsletter About us
04 April 2025 / Fred Philpott
Issue: 8111 / Categories: Opinion , Consumer , Commercial
printer mail-detail

Commissions: what’s in a name?

© Copyright LexisNexis 2026. All Rights Reserved.
214558
The Supreme Court case on motor finance commissions is based upon a simple economic falsity, argues Fred Philpott

The Supreme Court is currently hearing an appeal in Johnson v FirstRand Bank—motor finance cases where it is said there had been a ‘secret’ commission when a consumer got a car on hire purchase or conditional sale.

The whole premise of the case is false; there were no real ‘commissions’, let alone fiduciary relationships.

The basic facts

A consumer wants a car. They are at a car dealership, with cars on offer. The consumer needs finance. The dealer arranges it with a lender (a bank etc) (‘the creditor’). The consumer agrees the financial details (price of car, deposit, perhaps part exchange, term and monthly payments). It is that simple.

Then along came the claims management industry. On the back of the payment protection insurance (PPI) industry culminating in Plevin v Paragon Personal Finance Ltd [2017] UKSC 23, it was ‘discovered’ that some of the interest in the monthly payments

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Cripps—Radius Law

Cripps—Radius Law

Commercial and technology practice boosted by team hire

Switalskis—Grimsby

Switalskis—Grimsby

Firm expands with new Grimsby office to serve North East Lincolnshire

Slater Heelis—Will Newman & Lucy Spilsbury

Slater Heelis—Will Newman & Lucy Spilsbury

Property team boosted by two solicitor appointments

NEWS
Read All
NLJ this week: Tightening the screws on JCT terminations
The Supreme Court has delivered a decisive ruling on termination under the JCT Design & Build form. Writing in NLJ this week, Andrew Singer KC and Jonathan Ward, of Kings Chambers, analyse Providence Building Services v Hexagon Housing Association [2026] UKSC 1, which restores the first-instance decision and curbs contractors’ termination rights for repeated late payment
NLJ this week: Old rules, fresh warnings in employment law
Secondments, disciplinary procedures and appeal chaos all feature in a quartet of recent rulings. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, examines how established principles are being tested in modern disputes
NLJ this week: The rise of the ‘ChatGPT client’ rattles the profession
The AI revolution is no longer a distant murmur—it’s at the client’s desk. Writing in NLJ this week, Peter Ambrose, CEO of The Partnership and Legalito, warns that the ‘AI chickens’ have ‘come home to roost’, transforming not just legal practice but the lawyer–client relationship itself
NLJ this week: Surrogacy children caught in succession gap
A High Court ruling involving the Longleat estate has exposed the fault line between modern family building and historic trust drafting. Writing in NLJ this week, Charlotte Coyle, director and family law expert at Freeths, examines Cator v Thynn [2026] EWHC 209 (Ch), where trustees sought approval to modernise trusts that retain pre-1970 definitions of ‘child’, ‘grandchild’ and ‘issue’
NLJ this week: Online safety law at a crossroads
Fresh proposals to criminalise ‘nudification’ apps, prioritise cyberflashing and non-consensual intimate images, and even ban under-16s from social media have reignited debate over whether the Online Safety Act 2023 (OSA 2023) is fit for purpose. Writing in NLJ this week, Alexander Brown, head of technology, media and telecommunications, and Alexandra Webster, managing associate, Simmons & Simmons, caution against reactive law-making that could undermine the Act’s ‘risk-based and outcomes-focused’ design
Copyright © 2026 LexisNexis
back-to-top-scroll