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The banks hoped to be protected from a multi -grade scandal with a wrong sale on Monday, after the judges prevented the Government of the UK supports the industry in the upcoming court.
The treasury has taken an unusual step of searching for permission to intervene in the upcoming Supreme Court case, warning that the negative verdict can harm the banking sector and the rise of the boards.
A five -member council’s decision, including President of the Supreme Court Lord Reed, to prevent the Government from entering this is a failure shores Faced with a compensation account that enters tens of billions of pounds. The reasons are not specified for rejection.
The sections at Close Brothers, which is among the most exposed car loans, and said last week that he expects to set aside £ 165 million due to potential wrong sales, 7 percent have fallen on Monday.
The Supreme Court should hear an appeal by Auto Cars in April, which challenged a verdict from an appealing court last year, which was on the side of consumers who complained about the “secrets” of the commission for cars.
The verdict that it is illegal for the banks to pay the commission to the car seller without the buyer’s informed consent sent shock waves through the banking system.
Lloyds Charlie Nunn CEO said in December that the UK faced the “problem of investment” after the judgment of the court.
Lloyds, which owns the largest British car financing lender, has booked a provision of £ 450m to cover potential fees and legal costs.
The treasury said: “We are the British Ministry of Economy, so it was right. We respect the Supreme Court’s decision. “
