Supreme Court rejects UK chancellor’s car finance intervention

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The hopes of banks, which will be defended by the multi-million-pound incorrect sales, have been hit after the judges did not allow the British government to support the industry.

The treasury took the unusual step to seek the permission to intervene in the coming supreme court, warning that the unfavorable decision could damage the banking sector and economic growth.

The decision of the Judges’ Five Commission, including President of the Supreme Court Lord Reid so that the government does not interfere is a feedback bank Facing the compensation bill in tens of billion pounds. The reasons have not been given for rejection.

The shares in the brothers, which are one of the most supposed bank loans, said that last week was expected to leave 165 million pounds, 7% fell by 7% on Monday.

In April, the Supreme Court will learn that a complaint against the payment of payment supply, which faces the verdict of the Court of Appeals, which was in favor of consumer commissions.

The verdict that without customer’s informed consent has been illegal for banks to pay a commission through the banking system.

Lloyds CEO Charlie Nunn: said in December After the decision of the court, the United Kingdom had a “problem of investigation.”

Lloyds, which belongs to the Black Horse of the largest car financing lender, fixes 450 million pounds to include potential compensation and legal expenditures. The shares in the bank fell by 2.5% on Monday.

HSBC analysts estimate the total cost of compensation can reach 44 billion pounds, not far from 50 billion pounds for paid protection insurance.

As it prevented the government, the Supreme Court allowed the financial behavior to intervene in the case.

The banking industry and treasury hope that the regulator will send many of the same points as the government hoped to do.

FCA said “Look[ed] forward to the court. “

The treasury said. [the case] closely. “

Treasurer’s officials say that he was appropriate for the British Ministry of Economics to share his prospect with the Supreme Court of Appeal, so it could be held with his discussions.

The Supreme Court has a limited time and, as a rule, prefers to minimize the number of intervention, and generally reject the permit that increased arguments.