By Steve Conley | 25 July 2025
In a move that would send shockwaves through any functioning democracy, Chancellor Rachel Reeves is reportedly considering overruling the UK Supreme Court to protect banks and car finance lenders from a £60 billion compensation bill—leaving millions of misled consumers out in the cold.
This extraordinary development—revealed by The Guardian—follows months of intense lobbying from some of the UK’s most powerful financial institutions, including Lloyds, Santander, Barclays, and Close Brothers. It comes ahead of a Supreme Court ruling expected next week, which could confirm that hidden commissions paid to brokers on car loans were unlawful and that compensation is due to consumers.
The Treasury’s “contingency” plan? Retrospective legislation that would rewrite the law—after the fact—to slash corporate liabilities and avoid what one official described as “economic harm.” But for whom? The public, or the profit margins of Britain’s financial elite?
The Scandal: Hidden Commissions and Exploited Borrowers
The case centres on undisclosed commissions paid to car finance brokers—costs that were ultimately passed on to consumers without their informed consent. The Court of Appeal ruled last October that this breached common law principles of transparency and trust.
With over £44 billion in potential redress claims, financial giants like Lloyds (via its Black Horse subsidiary) are now heavily exposed. Some firms have already begun setting aside billions to cover potential payouts. But instead of letting justice take its course, the government appears poised to shield the perpetrators.
A Dangerous Precedent: Retrospective Legislation
The most alarming aspect is not just the influence of the City, but the willingness of this Labour government to subvert judicial authority and rewrite legal precedent retroactively—a rare move typically reserved for protecting the public purse, not private profits.
In 2013, retrospective legislation was used to prevent a £130 million payout to jobseekers. Now, the same tool may be wielded not in defence of the public, but to appease global investors and preserve the illusion of “City confidence.”
Beyond Car Loans: The Slippery Slope
The implications go far beyond car finance. If the law is changed retroactively to protect lenders in this case, it could set a precedent for other industries—appliances, furniture, and financial products—where brokers receive undisclosed commissions.
This isn’t just a threat to consumer rights. It’s a threat to the rule of law.
Labour’s Growth-at-Any-Cost Agenda
This episode is the clearest evidence yet that Reeves’ growth agenda is not about building back better—it’s about making the powerful more powerful. Since taking office, the Chancellor has signalled her desire to “revive the City” and attract international investment, even at the cost of public trust.
Let’s be clear: rewriting legal history to bail out big banks is not reform—it’s regulatory capture in plain sight.
Who Pays? The People, Again.
At the heart of this is a simple truth: consumers were misled, and they are entitled to redress. But instead of supporting victims, the government appears more concerned about the “reputational damage” to the City and the inconvenience of paying people what they’re owed.
If this legislation proceeds, it will signal the return of the same Piscean-era thinking that created the 2008 crisis: protect capital, punish conscience.
A Tipping Point for Financial Justice
The public deserves better. We cannot allow governments to be co-opted by corporate lobbyists, nor can we accept a justice system that is subject to political override when it dares to serve the people.
This is not about motor loans anymore. This is about democracy, transparency, and justice. The mask has slipped—and what we’re seeing is not leadership, but allegiance to a broken financial empire.
We must not go quietly.
We must not look away.
We must demand reform rooted in people before profit.
👉 If you’re a planner, consumer, or campaigner who believes in a just and transparent financial system, join the Academy of Life Planning. We stand for empowerment—not extraction.
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Together, we can turn victims into victors and restore what was taken—one life at a time.
About Get SAFE
Get SAFE (Support After Financial Exploitation) was born from a simple truth: too many victims of financial abuse are left to suffer in silence.
We exist for people like Ian—for the ones who did everything right, only to be failed by the systems they trusted. We know that behind every vanished pension, every ignored complaint, and every stonewalled letter is a person—frightened, exhausted, and too often alone.
Get SAFE offers more than sympathy. We offer structure, support, and solidarity.
We provide a voice where there’s been silence, and clarity where there’s been confusion.
We stand beside those who have been exploited, not just to help them recover—but to help them reclaim their story and rebuild their future.
Because financial justice is not a luxury.
It’s a human right.
If you or someone you know has been affected by financial exploitation, we are here.
You are not alone.
Learn more at: Get SAFE (Support After Financial Exploitation).
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