Premium Credit – Did you see that?

There is a lot of misunderstanding of what the Supreme Court is going to do in the Close Brothers case on April 1st.

Let’s get a few things clear.

No one, Supreme Court, Rachel Reeves, even Elon Musk, are going to say that customers should not be provided with full disclosure of their commissions.

Close Brothers Bank, Investec Bank and Bexhill UK ensure that all premium finance commissions are fully disclosed to customers. The leading lender in the UK insurance premium finance market has a different view from every regulatory, legal and market authority on this matter. Insurance brokers may want to think twice before they take this risk – because it is their risk!

The law and regulation on ADD ON Commissions is clear. ADD ON Commission is banned outright for car finance and must be fully disclosed for any other consumer finance.

The only matter the Supreme Court will decide is whether ANY other commission should be fully disclosed. This is less relevant to the insurance premium finance market, which is all ADD ON Commission.

So the rules on ADD ON Commission are already set and the insurance industry needs to act accordingly. The rules on ANY commission will be finalised by the Supreme Court. I will bet that the Supreme Court will follow the very clear and correct interpretation of the law by the Court of Appeal.