A British factory worker’s high-stakes case against car lenders has led to a David v Goliath battle exposing egregious commission practices, and potentially costing some of the UK’s largest banks up to £18 billion.
Marcus Johnson, who took out a second-hand Suzuki Swift loan in 2017, thought it would be similar to PPI claim forms where borrowers receive a few pounds. However, his case escalated into a three-and-a-half year legal battle that reached the UK Supreme Court.
The ruling found the car lender paid an unfair commission to the dealer – a quarter of the £6,500 price tag – and failed to disclose this information. Judges questioned whether it was reasonable for borrowers to read through reams of fine print, especially those considered commercially unsophisticated.
Johnson’s case exposed the complex relationship between lenders, manufacturers, and car dealers in the multi-billion pound motor finance industry. The industry now pays commissions to lenders for every new car sold, with 80-90% of cars bought using borrowed money.
The ruling also sparked a compensation scheme that could benefit thousands of consumers who were unknowingly overcharged. Car finance company representatives have reached out to Johnson seeking transparency improvements, and he hopes these changes will last.
Andrew Wrench, another claimant, initially lost his case but remains proud of the work he did, saying it highlighted the issue and earned him respect from friends and family. His cases are ongoing, with two other claims related to mortgage terms and diesel emissions.
The ruling’s potential repercussions have been significant, with some fearing a £44 billion bill could push firms into failure or restrict credit options for those relying on credit.
Source: https://www.theguardian.com/business/2025/aug/04/its-a-bit-strange-the-uk-factory-worker-who-beat-the-car-lenders-in-court