Treasury Intervenes to Safeguard UK's Motor Finance Industry

UK Finance Minister Rachel Reeves seeks to intervene in a major mis-selling case concerning car loans, aiming to protect the motor finance industry from a significant financial setback. A recent court ruling requiring more transparency in dealership commissions has produced widespread concern about potential hefty compensation payouts.

Rachel Reeves, the British finance minister, is set to play a crucial role in a high-profile car loan mis-selling case to defend the motor finance industry from expensive compensations.

The British Treasury is alarmed that if a pivotal October court ruling stands, it could complicate the process of obtaining car loans for consumers, given that 80% of vehicles in the UK are financed.

The Treasury aims to express their apprehensions in an anticipated Supreme Court appeal. Upon the Treasury's intervention, shares of Close Brothers surged 20% while Lloyds advanced by 4.3%, reflecting cautious optimism among market players.

(With inputs from agencies.)