Finance

Car Finance Ruling Could Spark Billions in Driver Claims

A case to decide whether millions of motorists could be entitled to compensation will be heard by the UK's highest judges this week.

A ruling from the Court of Appeal last year sent shockwaves through the car finance industry when it declared that hidden commission payments to dealers were unlawful.

Companies involved argue they did nothing wrong and are awaiting crucial clarity from the Supreme Court.

Lenders, including major banks, have set aside substantial sums as millions of people who purchased new and used cars on finance may now be eligible for claims potentially worth hundreds of pounds.

When Marcus Johnson bought his car, the dealer received £1,650 — a quarter of the total amount he borrowed.

Mr. Johnson, a 34-year-old from Cwmbran, Torfaen, bought a blue Suzuki Swift in 2017 but was unaware of the commission payment, despite the lender stating that he had signed a document acknowledging it.

“I bought it as a little run-around, to get back and forth from work and to take my family out on the weekends,” he said. “I had no idea commission was even part of the industry.”

His case, along with two others, became key test cases that led to the Court of Appeal's decision, where three judges unanimously agreed that it was illegal for lenders to pay commission to dealers without the buyer’s informed consent.

This ruling means customers should be clearly informed about the commission being paid and agree to it, rather than it being hidden in the loan's terms and conditions.

The car finance industry, the UK’s second-largest consumer lender after mortgages, is at the center of the controversy, with most new cars—and many second-hand vehicles—purchased through finance deals.

Under these arrangements, motorists put down a deposit, borrow the remainder of the price, and drive off with their new car, while dealers received commissions from lenders behind the scenes.

TECH

How Finnish Defense Companies Are Thriving ‘On Steroids’

Wearing a lab coat and silver gloves, production specialist Jose Barrientos meticulously assembles a headset for Varjo, a Finnish company creating advanced technologies for military simulations. The headset combines cameras, eye-tracking, and electronics to simulate high-stakes scenarios.

"Everything has to be perfect," Barrientos explains, noting the delicate balance of components that can drastically affect the final product.

Varjo is part of Finland’s growing defense tech sector, which includes 368 companies. About 40% are start-ups, many expanding rapidly with dual-use technologies. Helsinki now ranks among Europe’s top cities for defense investments.

Varjo's headsets are used by NATO forces for simulation training, offering a "mixed reality" experience that reduces the need for costly physical simulators. CEO Timo Toikkanen says the war in Ukraine and Finland's NATO membership have dramatically boosted interest, helping the company raise over €50m since March 2022.

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CRYPTO

Trump Family Expands Its Footprint in Crypto with New Venture

On Monday, President Trump's sons announced their investment in a new Bitcoin mining venture, further expanding the family's involvement in the crypto industry.

Eric Trump and Donald Trump Jr. revealed they would partner with Bitcoin mining company Hut 8 to launch a new firm called American Bitcoin. Bitcoin mining, a profitable sector of the crypto industry, involves large companies running energy-intensive machines to process Bitcoin transactions.

“From the start, we've supported Bitcoin both personally and through our businesses,” said Donald Trump Jr. in a statement. “But buying Bitcoin is only part of the equation. Mining it with favorable economics presents an even greater opportunity.”

As part of the deal, Hut 8 will hold 80% of the new company, while the remaining 20% will be owned by American Data Centers, an entity backed by the Trump brothers. Hut 8's announcement on Monday listed Eric Trump as a co-founder and named him Chief Strategy Officer for the venture.