Financial Services analysis: The High Court has ruled that a decision of the Financial Ombudsman Service (‘FOS’) relating to motor dealing and the motor finance industry issued in January 2024 was lawful. The Financial Conduct Authority (‘FCA’) which regulates motor finance was an interested party to the proceedings. A consumer, Ms Lewis, originally complained to the FOS having entered into a conditional sale agreement with Clydesdale Financial Services Ltd (‘Clydesdale’, trading as Barclays Partner Finance) which bought the car from Arnold Clark Automobiles Ltd (‘Arnold Clark’). Her complaint was upheld by the FOS in January 2024. The particular focus of the FOS decision was on the commission arrangements between Arnold Clark and Clydesdale, which affected the interest rate payable by Ms Lewis under the conditional sale agreement. At issue were both the commission arrangements themselves and what was disclosed to Ms Lewis about them. The Ombudsman made a monetary award in Ms Lewis’...
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