Gateway2Lease welcomes clarity of Supreme Court judgement

The Supreme Court has overturned the Court of Appeal rulings from October last year covering discretionary commission arrangements for finance brokers.

The case involved three claims against car finance companies that offered credit through car finance brokers. The outcome could have impacted how leasing brokers, such as Gateway2Lease, operated in the future. The judgement dismissed two of the cases, but upheld the third where it considered the relationship ‘unfair’ and ordered the refunding of the commission plus interest.

The full judgement from the Supreme Court can be found here.

“We welcome the clarity brought by Friday's Supreme Court ruling. Looking ahead we expect the post-judgement landscape to favour brokers who operate with integrity and openness, and I'm optimistic that the outcome will ultimately strengthen the industry as a whole,” commented Kelly Marshall, Managing Director of Gateway2Lease.

“But while it supports the broker/consumer relationship, we must make sure as an industry that commission payments are clear, and consumers understand the nature of the arrangement they are entering into. Transparency is absolute.”

The judgement was focused on the car finance broker industry where dealers help fund a car with finance, typically through a Hire Purchase agreement under the Consumer Credit Act of 1974. Nevertheless, it had the potential to impact how leasing brokers operate.

The service Gateway2Lease provides to consumers and businesses

At Gateway2Lease we provide competitive lease rentals that allow drivers - consumers and businesses - to drive a vehicle for a period of time and mileage for a set monthly rental, before the car is returned.

To help source the most competitive lease package, we run each vehicle through all the funding options from our finance partners to provide you with the best deal.

“One of the things we are very clear about is the disclosure of the commission we make before the agreement is signed,” continued Kelly.

“We think it is essential that those who wish to acquire their car or van through us know the cost of our arrangement fee and how much we are taking in terms of commission. We believe that is a fair arrangement that benefits both parties and provides a high level of trust in how we do business.”

Photo credit: UK Supreme Court