Court of Appeal hands down judgment in Angel v Black Horse as FCA scheme falters

On June 30th, 2026, The Court of Appeal handed down its judgement in Angel v Black Horse, dismissing an appeal brought by lenders, meaning that more than 5,000 motor finance commission claims can continue to be managed together, providing important procedural clarity for what could ultimately affect millions of consumers with similar claims.

The underlying claims concern discretionary commission arrangements (DCAs), where claimants allege they were not told that car dealers received commission from lenders and, in some cases, could influence the interest rate charged under their finance agreement. The claimants argue this created an unfair relationship under sections 140A and 140B of the Consumer Credit Act 1974.

This particular appeal did not decide whether the lenders are liable, nor did it determine whether consumers are entitled to compensation. Instead, it considered a procedural question: whether thousands of similar claims can be pursued together on a single claim form and managed collectively, or whether each claimant must bring an individual claim.

The Court of Appeal upheld the earlier High Court decision that collective case management is appropriate. It found that although each unfair relationship claim will ultimately require consideration of its own facts, there are sufficient common issues and potential lead cases to justify managing the litigation together. The Court stressed that this approach promotes efficiency, consistency and access to justice.

The judgment also recognised that forcing thousands of consumers to pursue separate small claims could make many claims uneconomic to pursue, potentially preventing claimants from obtaining access to justice.

What does this mean for consumers?

The decision does not mean that every motor finance customer will automatically receive compensation. Whether a consumer has a successful claim will continue to depend on the individual facts of their agreement, including how commission was paid and what information was disclosed at the time the finance was arranged.

However, the judgment is another significant step in the development of motor finance commission litigation. It provides greater clarity for courts, legal representatives and consumers, while confirming that commission arrangements remain subject to close judicial scrutiny.

What happens next?

While the Court of Appeal's judgment provides further clarity on how motor finance commission claims can be managed, uncertainty remains around the FCA's proposed industry-wide redress scheme.

Following the FCA's announcement in March 2026, several legal challenges were brought against the proposed scheme by both consumer group Consumer Voice and four major lenders.

On June 29^th 2026, the Upper Tribunal heard initial submissions from all parties. During the hearing, the banks indicated they may not be ready for trial until March 2027 due to the complexity of the issues they intend to argue. If that timetable is adopted by the Tribunal, a judgement may not be delivered until the middle of 2027, meaning any redress scheme is unlikely to be implemented before early 2028.

The FCA has indicated that, should this timetable be adopted, it would suspend implementation of the proposed scheme until the legal challenges have been resolved.

For many consumers, this could mean a significantly longer wait for certainty and potential redress.

Johnson Law Group continues to monitor developments closely and remains committed to progressing clients' claims through the courts while the wider legal and regulatory landscape continues to evolve.

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