 Re above, some interesting comments in the SUS trading update this morning:
"Equally important for our future prospects is the indication of a more balanced and pragmatic approach to government regulation and policy. Recent shifts suggest a reassessment of previous consumer-focused measures, addressing concerns about potential constraints on economic growth.
Recent calls by the Prime Minister and the Chancellor for a deregulatory and growth-focused agenda, and their demands from every regulator for specific proposals for these, offer the prospect of a stable and pragmatic framework for financial services. The new zeitgeist is in fact exemplified in the current edition of The Economist magazine where the front cover splashes 'the revolt against regulation'. As a result, the past two months have seen a number of representations from UK Finance, the Finance and Leasing Association ("FLA") and from S&U to both Government and Parliament designed to ensure a robust and predictable regulatory framework. The FLA, Advantage's trade body, is preparing further suggestions for reform to which we will contribute.
The question does remain as to whether this new encouragement of responsible risk-taking will extend to the Supreme Court, when it reviews last October's Court of Appeal decision on commission disclosure which has so disrupted the entire motor finance market. Again, the signs are cautiously encouraging. The speed with which the Supreme Court is considering the matter and their sanctioning direct representations from the Treasury, the FLA, and the Financial Conduct Authority, speak to a common-sense approach. My view is that even should the Supreme Court uphold the lower courts' decision in principle, any 'harm' found to have been suffered by consumers will be so marginal as to make demands for redress minimal." |
They might address the car loan side.
If she thinks pumping more retail debt and relaxing standards will help she might get a shock as it's pushing on a string and the growth gearing to debt level is coming to the end of the road, if not already there, and they just don't want to see it yet.
Might help for the corporate side if it goes along with tax incentives for capital equipment purchases to drive productivity but it might lead to more unemployment. |
Sky news:
Rachel Reeves has summoned the bosses of the major high street banks for talks this week as the chancellor seeks ideas to grow the economy; sources say the financial services component of the government’s new industrial strategy is on the agenda. |
Could be any number of reasons and not all bad.
29th Nov the wife of the head of Savings & Vehicle finance at STB bought.
Would she have done so if he thought it unsafe? |
Anyone concerned about the lack of the pre-close trading update? Last year 25th Jan, 2023 a week earlier. |
Couldn't agree more with this poster on Stockopedia:
"Will this be the end of the lawfare which stops out economy moving, who knows.
I finance a car for a price I consider fair. The small print which no one reads doesn’t say the sales person got commission.
I get a multi thousand payout for absolutely nothing. It’s a total nonsense." |
From City AM:
Close Brothers has swapped in a top magic circle law firm for its Supreme Court battle to overturn the landmark motor finance test case.
The two lenders involved in the Court of Appeal case, merchant bank Close Brothers and South African lender FirstRand, are bringing their fight to the Supreme Court.
City AM understands that while Close Brothers had Leeds-based law firm Walker Morris on for the Court of Appeal case, the lender has tagged in the big dogs for its day at the Supreme Court.
As confirmed by the lender’s representative, a team of lawyers from Slaughter and May will be representing the lender for its appeal.
Sentiment changing on this ridiculous claim culture which is stopping lending. Hopefully gets thrown out in April.
Added a few here recently |
They need to act fast. The economy is on the brink of something not at all good and will take a long while to recover from and Labour will be toast. Not looking good out 18 months, just mho. |
Financial Ombudsman Service chief quits months after Reeves’ call for reform
Abby Thomas has stepped down following criticism over the ombudsman service’s role in the motor finance commission scandal.
The boss of the UK’s Financial Ombudsman Service (FOS) has quit, months after Chancellor Rachel Reeves said she would overhaul the public body.
Abby Thomas was set to appear in front of the Treasury Committee of MPs later this month, but her departure was announced on Thursday.
The chief executive, who had come under fire for the FOS’s role in the motor finance commission scandal, only started the role in October 2022.
The FOS is a public body offering consumer redress over disputes in the financial sector.
It has been under fire since last year, however, for taking what some finance firms consider an overly consumer-friendly stance over complaints about alleged mis-selling of car loans.
The scandal, which relates to complaints over undisclosed commissions on motor finance deals, has left several major lenders facing billions in possible compensation payments. |
Head of financial ombudsman resigned. |
Drop seems in line with comparables - but note that ambulance chasers from Slater + Walker are now mailshotting to stir up this issue. Hope they lose a packet on it! |
Where is personal responsibility gone in this country? The thought that it’s always someone else’s fault, seems to be main line of thinking in all sorts of areas in life.
If I choose to buy a golf club or anything else on credit, it’s my decision and it’s up to me to look at other quotations and options. Being deliberately misled or scammed aside of course! Let’s have a common sense ruling, if any common sense exists anymore!
Rant over! |
Martin Lewis has a live show today at 8pm on ITV. No doubt he'll comment on the story. |
Some common sense might reign.
The wider issue is the damage it would do to the ability of the larger banks to support mortgage lending if they are hammered by the costs of this issue.
Less lending and at higher rates anyone? Build and sell 1.25M houses? Forget it.
GDP would take a hit as would Labours already not so hot popularity. |
In the recent Barclays Vs miss L case, lawyers for miss L won on all points bar one.
The Barclays appeal on quantum was allowed to continue. It will be interesting to read the final judgement on this point, which may be swayed by today's news. |
A few months ago I bought a golf club on ebay. When paying it offered me installments and quoted an apr. Commission was not quantified.
Does the government want to risk contagion to other areas.
About two months ago an American law firm filed a class action in the UK for something like £75bn, concerning ppi claims, which did not have commission details included.
Again can the government risk further contagion.
There must be hundreds of similar risks to the UK economy and it's credibility as a business centre is at issue.
A line needs to be drawn. |
I posted this in the CBG thread where the debate is quite active;
We must distinguish between the bundled cases (which I would happily believe were actually contrary to regulation and to a reasonable interpretation of the law) vs the much, much, much broader judgement. This went two steps further than was necessary, particularly given the FCA was overseeing a steady improvement in best practice.
I would hope the Supreme Court upholds the decision in favour of the consumers, but strikes out the much broader language. I do not know how much of CBG's vehicle finance was of the type represented in court. I own little CBG. I own a lot more STB, and STB has disclosed that it did a small amount of business close to (though I think not as 'bad' as) the bundled cases, quite some years ago, and it was already prepared for compensation in those cases.
Until I saw PJ84's paste of the FT article I hadn't seen the language "generate a perception that regulation in the UK is uncertain", but I think that is EXACTLY the right point to make. It is certainly not in consumer medium term interests across a whole range of subsectors to let this broad judgement stand. The Martin Lewis point is well made. |
Rachel Reeves intervenes in UK car finance mis-selling case to protect lenders
Treasury approach to Supreme Court is blow to consumer groups but chancellor fears damage to sector
FT: |
I never believed that I would ever be grateful for anything that Rachel has done!!! |
It’s taking g a quick breather now whilst a few bank some profit but even with continuing risk I think £5+ is baked in by day end or tomorrow. The Company is run well in terms of cash and dividend cover - from memory I think dividend is covered four times. |
The pressure has been building. Lloyds CEO was vocal. Last week we were told the FCA was being called in to meet ministers. Etc etc. I wonder if Santander were asked (in some machiavellian way) by the government or others to kick up a fuss. They may slightly regret it as they rattled staff (some of whom are anyway being made redundant). My screw up this morning was not buying more at the open as it was clear it should at least retrace to 5 quid, even if you think the supreme court and public opinion will fight back so that big risks remain. |
Thank you both👍 |
Put capital H at start, advfn adds xx otherwise. |
Digger - replace hxxps with https |
Can anyone help with opening the above link? Thank you |
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