LONDON (ShareCast) - (Sharecast News) - The share price of S&U surged on Monday after the Supreme Court ruled largely in favour of banks and lenders in the motor finance case, with the car loans company hailing it a "victory for common sense".
In its long-awaited ruling on car finance, the Supreme Court announced late on Friday that hidden commissions from lenders to dealers on car loans were not unlawful. The ruling means that millions of motorists will not be able to claim compensation.

Following the announcement, the Financial Conduct Authority said it will consult on running a compensation scheme, ruling that in certain cases the failure to properly disclose commission arrangements could be unfair and therefore unlawful.

S&U subsidiary Advantage Finance reiterated that it never used discretionary commission arrangement and "feels very confident that its longstanding quality of customer service will mean that any unfair relationships found would be minimal".

Advantage's chief executive Karl Werner welcomed the FCA ruling, saying it provides "legal clarity for the motor finance industry".

Meanwhile, S&U chair Anthony Coombs said: "This decision is a victory for common sense. It will significantly boost confidence throughout the motor finance industry and benefit lenders and consumers alike in attracting investment and increasing competition."

S&U shares were up 12.1% at 1,950.40p by 1034 BST.

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