Landmark court ruling favours consumers

Millions of UK motorists who were mis-sold car finance agreements may be in line for increased compensation payouts after a groundbreaking court ruling. The Court of Appeal's decision confirms that thousands of affected drivers can advance claims against eight major lenders in England and Wales. As a result, Barings Law, the firm that initiated these claims, is launching an unprecedented model named My Free PCP Claim. This innovative programme ensures that motorists who engage in legal actions against their lenders will receive 100% of damages awarded in successful claims, free from any legal fee deductions.

The pivotal ruling, delivered on 30 June 2026 in the case of Angel & Ors v Black Horse Ltd, addressed the handling of 5,800 claims from motorists against well-known finance providers. Following persistent litigation from Barings Law since 2020, the Court has ruled that individuals mis-sold vehicle finance can join an omnibus claim rather than each filing separate claims—marking a significant stride in consumer rights.

Robert Whitehead, Chairman of Barings Law, emphasised the ruling's importance, describing it as “a step towards securing true justice for millions of drivers who were mis-sold car finance over many years." He highlighted the unnecessary delays suffered by consumers while financial institutions challenged the regulatory decisions. Whitehead noted, "We've always believed that consumers should be able to pursue the strongest legal route available without unnecessary barriers."

Today's ruling not only enables affected motorists to seek just compensation but also sets a precedent for how consumer claims are pursued across various sectors, signalling a shift towards collective legal action. The launch of Barings' My Free PCP Claim is a direct response to frustrations with the Financial Conduct Authority's (FCA) prolonged Motor Finance Redress scheme, which has encountered delays and challenges.

Under the FCA's scheme, announced in March and intended for motorists mis-sold financial products from 2007 to 2024, the typical payout is estimated to be around £830. However, the scheme has faced legal hurdles, which may push the start date to 2027 or lead to its eventual cancellation. Previously, motorists were warned about the risks associated with pursuing legal action, potentially losing up to 30% in fees. However, with the Court’s backing, Barings Law aims to demonstrate that motorists can navigate claims while keeping all compensation awarded.

Whitehead added, "We have heard the frustration from motorists," reflecting a widespread sentiment among affected drivers. By offering a clear legal pathway and total compensation, Barings Law enables consumers to reassess their options. "Consumers are once again being given the choice: allow the redress scheme to take its course, or allow legal experts to guide their case forward with the promise of full compensation." The firm has set up an online platform to help individuals check their eligibility for these claims, ensuring a brighter future for countless affected drivers.