Last week, the UK Financial Conduct Authority (FCA) told the Supreme Court that a prior Court of Appeal ruling in the country's ongoing motor finance scandal went "too far" and could destabilize businesses, as reported by The Guardian.
Early last year, the FCA launched a probe into auto lenders' use of "discretionary commissions," which incentivized finance brokers and dealers to raise interest rates on auto loans. In October, the Court of Appeal ruled that dealers have a fiduciary duty to offer the best possible financing terms to customers and that failing to disclose the commission payments was unlawful.
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