Drivers could find out this afternoon if they are entitled to compensation if they were mis-sold car finance as the Supreme Court prepares to hand down a bombshell verdict.

At 4.35pm this afternoon, the Supreme Court will decide whether to uphold a previous ruling which found that motorists may have agreed to unlawful finance deals.

To help motorists find out if they could be impacted or receive compensation ahead of the Supreme Court's decision this afternoon, GB News has answered some of the most important questions.

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In 2021, the Financial Conduct Authority (FCA) banned the use of "discretionary commission arrangements" (DCAs), which prevented dealers from increasing interest rates on car finance to get extra commission.

The regulator then launched an investigation into the practice in 2024 after numerous complaints from drivers.

This prompted a Court of Appeal verdict which found that dealers couldn't receive compensation unless they had informed the customer, which was a win for drivers seeking compensation.

The finance firms - Close Brothers and MotoNovo - involved in this case challenged the judgement, leading to today's Supreme Court decision.

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The highest court in the land could uphold the appeal, which could lead to a compensation scheme being set up for motorists, although it is not known how much this could cost.

However, the Supreme Court could reject the Court of Appeal ruling, which would likely see DCA claims go through, but not Commission Agreement complaints.

The Financial Conduct Authority submitted documents to the Supreme Court earlier this year in which it stated: "It is respectfully submitted that the Court should have regard to the careful balance that has been struck in the applicable regulatory scheme when determining the appeals."

Reports have suggested that Chancellor Rachel Reeves could intervene in the car finance scandal following the Supreme Court's decision.

This would be done to ensure the future of brokers, lenders and banks if they are held liable and have to pay compensation, which could be in the billions of pounds range.

A spokesperson for the Treasury noted that it does not comment on speculation and would let the appeals process run its course.

Speaking previously to GB News, Bobby Dean, Liberal Democrat MP for Carshalton and Wallington, said: "When you get finance, you require impartial advice to get the finance element.

"When the dealer is presenting to be the honest broker and they're not, when they've already stitched up the deal behind closed doors, that is the problem."

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The FCA confirmed that it would launch a consultation on an industry-wide consumer redress scheme, which would lead to the regulator setting rules.

It added that it would be guided by seven principles, including comprehensiveness, fairness, certainty, simplicity and cost effectiveness, timeliness, transparency and market integrity.

It also highlighted how it would have to consider a number of features when designing such a scheme. This includes:

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Darren Smith, managing director at Courmacs Legal, said the Government should respect the Supreme Court and uphold the rule of law, rather than bailing out banks, in reference to the Chancellor considering helping lenders.

He added: "It is outrageous and an affront to the rule of law that the Treasury is even considering giving motor finance giants a free pass at the expense of millions of hard-working consumers."

Sam Ward, director and chief investigator at Sentinel Legal, spoke to GB News this afternoon about what drivers can expect.
He noted that it could cost the industry £44billion through compensation and administrative costs.