Secure Trust Bank PLC
LEI: 213800CXIBLC2TMIGI76
28 October 2024
SECURE TRUST BANK PLC
("STB" or the "Company")
Vehicle Finance Update
STB notes the recent Court of Appeal decisions on Johnson and Wrench v FirstRand Bank Ltd and Hopcraft v Close Brothers Limited relating to motor commission arrangements. The Company also notes the intention of these lenders to appeal the decisions to the Supreme Court.
The Court of Appeal has held that motor dealers acting as credit brokers owe certain duties to
disclose to their customers commission payable to them by lenders and obtain the customers' informed consent, and that lenders will be liable for dealers' non-compliance. This sets a higher bar in relation to commissions than had been understood to be required across the vehicle finance industry, before the Court of Appeal's decisions. These decisions relate to commission disclosure and consent obligations, which go beyond the scope of the current FCA discretionary motor commissions review.
STB is assessing the potential impact of the decisions, as well as any broader implications, pending the outcome of the appeal applications. The Company will update the market, if and as appropriate.
Enquiries:
Secure Trust Bank PLC
David McCreadie, Chief Executive Officer
Rachel Lawrence, Chief Financial Officer
Phil Clark, Investor Relations
Tel: 0121 693 9100
Investec Bank plc (Joint Broker)
David Anderson
Christopher Baird
Maria Gomez de Olea
Tel: +44 (0)20 7597 5970
Shore Capital Stockbrokers (Joint Broker)
Mark Percy / Angus Murphy (Corporate Advisory)
Guy Wiehahn (Corporate Broking)
Tel: +44 (0)20 7408 4090
Camarco
Ed Gascoigne-Pees, Geoffrey Pelham-Lane, Sean Palmer
Tel: 07591 760844
About STB
Secure Trust Bank is an established, well‐funded and capitalised
(i) Business finance through its Real Estate Finance and Commercial Finance divisions; and
(ii) Consumer finance through its Vehicle Finance and Retail Finance divisions.
Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Secure Trust Bank PLC, Yorke House, Arleston Way,
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