Britain’s Supreme Court has overturned a 2024 Court of Appeal ruling that had exposed lenders to potentially massive liabilities over hidden commissions on car finance. The justices found that car dealers arranging finance do not owe fiduciary duties to customers, meaning banks are not automatically liable for commissions paid to dealers. While one claimant was awarded about £1,650 on grounds of an unfair relationship, the judgment substantially narrows the circumstances in which borrowers can claim redress. Despite the ruling, the Financial Conduct Authority said it still plans to establish an industry-wide compensation framework covering so-called discretionary commission arrangements that were insufficiently disclosed. In a statement on Sunday, the regulator estimated the total bill for lenders at no less than £9 billion and potentially as high as £18 billion—well below the £35 billion paid out in the Payment Protection Insurance scandal. The FCA aims to publish a consultation paper by early October and indicated that payments to affected motorists could begin in 2026. The decision offers a reprieve for lenders such as Close Brothers and South Africa-based FirstRand, whose shares had been weighed down by fears of unlimited exposure. The Treasury said it would work with regulators and industry to gauge the implications for both consumers and credit markets. Analysts expect any eventual redress programme to focus on cases where the relationship between borrower and lender was demonstrably unfair rather than on all historic commissions.