Woodsford-Funded Class Action Targets Three UK Lenders
Despite the recent Supreme Court decision, class action cases still represent a prime opportunity for litigation funders in the UK, with another lawsuit having recently been filed that seeks accountability from three financial institutions over their alleged anti-consumer practices. An article by Proactive Investors provides a summary of the class action case being brought against three British lenders, who allegedly charged higher rates for motor finance customers in order to fund brokers’ commissions. The lawsuit is targeting Black Horse (a Lloyds’ subsidiary), Santander UK and MotoNovo Finance, stating that these lenders overcharged their customers between 2015 and 2021, with total excessive charges approaching £1 billion. The class action is being funded by Woodsford and is being led by the law firm Scott + Scott, who stated that the litigation would seek to “hold large companies to account” over these practices. Doug Taylor, the class representative for the action, alleged that these lenders used the commissions to “incentivise dealers” and as a result, “Customers unknowingly paid more for their car loans.” Although MotoNovo Finance and Santander UK did not comment on the case, a spokesperson for Black Horse stated that the company “continue to comply with regulatory requirements that apply in relation to the payment of commission and the disclosure of commission to customers.” After the lawsuit was filed in the High Court last month, the Competition Appeal Tribunal will now decide whether the claim can move forward.