Banks see share prices rocket after being saved from paying out billions in car finance scandal
Lloyds saw a jump after the Supreme Court removed the threat of £44billion industry pay-outs.
Shares at the banking group rose eight per cent while Close Brothers soared by as much as 34 per cent at one stage after the Friday ruling.
Barclays saw a jump of two per cent.
Around 14 million drivers could still be entitled to pay worth up to £18billion but only for large commissions seen as unfair, going back to 2007.
The case focuses on commissions paid by the lenders to car dealers with some higher interest rates which were not then properly relayed to buyers.
But judges found dealers did not owe a 'fiduciary duty' of loyalty to customers.
There is now concern over the fact firms might have to keep records from decades ago.
John Phillipou of the Finance & Leasing Association said: 'I don't think it's good for investability that the reason for keeping the data is that you might get sued in 15 years time.'
Chancellor Rachel Reeves was said to be ready to intervene if the bill hit £44billion — due to the damage it could do to the UK as a place of business.
A compensation scheme will be consulted on in October.
Drivers are set to see pay-outs of less than £950 from as early as next year, the Financial Conduct Authority said.
eBay payment shake-up, Lloyds Bank sets aside £1.2billion for car finance payouts and little-known benefit
Lloyds had put aside more than £1billion for the fall-out but said any change is 'unlikely to be material' for the group.
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Metro
7 minutes ago
- Metro
UK firm introduces new model for collecting fine spirits in the US
Decant Group, the company behind the Decant Index platform, has launched in the United States. Known in the United Kingdom for simplifying fine wine and spirits collecting, the company is bringing its digital-first model to a growing but still fragmented American market. Over 44,000 UK users already rely on the platform, which has facilitated 1,618 exits and returned more than £4.6 million to clients. Decant Index is not only a marketplace. It provides tools for collectors to build and manage portfolios with transparency and ease. Focusing on bonded storage, real-time tracking, and education, it offers an alternative to traditional, opaque collecting practices. The move signals a push to introduce American collectors to a structured way of owning and understanding premium assets. Decant Index provides users with full legal ownership of their purchases. Each bottle or cask is sold whole, without fractional schemes or pooled investments. Ownership documentation is available through the platform, offering buyers full control and clear asset verification. Assets are stored under bond in regulated warehouses. These UK-based facilities store goods without triggering import taxes, which are deferred until the goods are withdrawn. This bonded model helps maintain product condition and supports long-term value preservation. Although well-established in the UK, the concept remains relatively unfamiliar to many in the US. All features are integrated into a digital dashboard, enabling users to track portfolio performance, access valuation data, and receive curated recommendations based on their portfolio behaviour. The platform combines functionality with transparency, allowing collectors to navigate the market with enhanced insight. Education is central to Decant's approach. The company offers detailed content on valuation, market behaviour, distillery heritage, and the fundamentals of collecting. Tools are designed to help users understand what makes certain bottles or casks collectable, rather than encouraging impulsive purchases. Decant has launched a series of webinars for new users. These online sessions explore topics such as how bonded storage works and what separates a collectable cask from a standard commercial product. In-person events are also being planned to engage collectors in the US more directly. Chief Executive Alistair Moncrieff said the goal is to support informed decision-making. 'We will be heavily focused on educating the market on the pros and cons of purchasing fine wine and spirits under bond in the UK and how that can help retain value,' he said. The platform removes much of the guesswork traditionally associated with collectables. Each asset is traceable, securely stored, and updated with valuation data. Collectors can follow market trends, monitor asset appreciation, and adjust strategies without relying on third-party interpretations. Decant Index users also benefit from bonded storage in Alloa, Scotland. These facilities are HMRC-audited and provide insurance coverage for every cask. Clients receive routine updates about their holdings, and real-time access to their asset history helps reduce the risks often tied to alternative investments. Decant Index recently expanded to include fine wine and premium rum. One new offering, the Wine Cellar Plan, is a subscription service that starts at $330 per month. It includes curated wine portfolios, bonded storage, and digital management tools. This move broadens the platform's appeal and aligns with demand for diverse collectable assets. Decant Group is also building relationships in the US. These include partnerships with local distilleries, compliance consultants, and logistics providers. These efforts aim to ensure that US-based collectors receive relevant support and information tailored to their region. Moncrieff explained that product design is based on listening to what users want. 'We have invested seven figures in technology, ensuring our customer experience is at the forefront of what we do,' he said. 'We believe our success has come from understanding what the customer expects to see and how they want to be spoken to.' By combining education, clear ownership, and warehouse-backed security, Decant Index presents a collecting model built on clarity. It is not centred on quick sales or speculative flips. Instead, it offers a complete system for acquiring, managing, and understanding spirits as assets. Expansion into the US reflects the company's intention to standardise fine spirits collecting for a wider audience. The platform will continue to evolve, with plans to enhance production guides, offer valuation trend insights, and deliver more educational material. Its long-term goal is to help users navigate collecting with more confidence and less confusion. 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As with all alternative asset purchases, the value of fine spirits can go down as well as up. These assets are not regulated by the Financial Conduct Authority and may be illiquid.
The Independent
7 minutes ago
- The Independent
Fears of rise in uninsured drivers as insurance tax receipts soar
Consumers paid a total of nearly 9% more in a tax on insurance premiums last year, leading to fears of drivers becoming priced out of policies. The AA, which conducted the research, urged the Treasury to cut the rate of insurance premium tax (IPT) on motor policies by a quarter, with a 50% reduction for newly qualified drivers. The standard rate of IPT – which applies to premiums such as motor insurance – has been 12.0% since 2017. It was 2.5% when it was first introduced in 1994. Premiums being more expensive mean receipts from standard rate IPT totalled £692 million last year, up 8.6% from the previous 12 months. HM Revenue and Customs said the increase was partly caused by 'rising car and property insurance premiums'. AA president Edmund King told the PA news agency: 'Insurance premium tax on motor insurance is a tax on responsible ownership – protecting yourself and third parties from the financial damage of incidents and injuries. 'Surges in the cost of insurance over recent years have ratcheted up the pain for those most prone to paying high premiums. 'Many of those are people least able to afford it, such as young and newly qualified drivers with higher risk as well as low-income policyholders. 'That not only threatens to price them out of cover but tempts more to drive without insurance.' Drivers caught behind the wheel of a vehicle without insurance face a £300 fine and six penalty points. The most serious cases are taken to court, and offenders can receive an unlimited fine and disqualification from driving. A spokesperson for the Association of British Insurers (ABI) said: 'While we appreciate fiscal headroom is limited given pressures on public spending, we continue to believe that insurance premium tax is an unfair levy on a responsible purchase. 'Those who purchase insurance should not be penalised for trying to protect themselves, their loved ones and their property. 'We continue to call for IPT to be frozen until fiscal and financial conditions allow for the standard rate to be cut.' ABI figures show the average cost of motor cover last year was £622, representing a 15% (£78) jump from 2023. This followed a 25% (£109) annual rise from 2022 to 2023. The ABI said total claims payouts rose by 17% in 2024, and stressed that 'work must continue' to tackle the cost of insurance. It wants the Government to focus on issues such as reducing vehicle theft and insurance fraud, and boosting recruitment in the vehicle repair sector. It noted the average cost of policies in the first three months of 2025 was 7% lower than a year earlier. A taskforce led by the Treasury and the Department for Transport focused on the rising cost of car insurance was established in October last year. The body, which brings together industry and consumer groups, is expected to publish its final report in the autumn. A Treasury spokesperson said: 'The overall cost of insurance is determined only in part by insurance premium tax, which contributes over £8 billion a year towards vital public services. 'Our cross-Government taskforce on motor insurance will deliver on our commitment to support drivers by finding ways to tackle the high cost of motor insurance.'
The Independent
7 minutes ago
- The Independent
Beautician and dentist in 1.8m inheritance battle after both married same man in Las Vegas
A beautician and a dentist are locked in an inheritance battle over a dead accountant's £1.8m fortune after he married both of them in Las Vegas five years apart - but failed to get a divorce from his first bride. Wealthy accountant James Dinsdale died of cancer, aged 55, in October 2020, leaving a £1.8million estate to be fought over by the two women who called themselves his wives. After his death, his most recent partner, beautician Margaret Dinsdale, 41, began sorting out his affairs on the assumption that she would inherit his fortune as his next of kin. But she was left reeling when she discovered James was still legally married to his first wife when he whisked her off for a Las Vegas wedding in 2017 - making their marriage "void" and leaving her with no automatic right to inherit. Just five years earlier, James had married cosmetic dentist, Victoria Fowell, 53, at a Vegas wedding chapel on the same street and only 600 metres from where he wed Margaret, but never got round to divorcing her - making her James' heir alongside his adult son under intestacy laws. However, the two women are now locked in a High Court clash after Margaret launched a claim to a share of James' money on the basis she should be treated as a "spouse" because she married him in "good faith." In a short preliminary hearing, High Court judge Master James Brightwell heard accountant and Second World War history expert James Dinsdale built a thriving property development business, based around central London, before he died and left an estate now valued at around £1.8m. He wed Dr Victoria Fowell - a St Albans-based dentist with an expertise in 'cosmetic smile makeovers' - in 2012, but the pair never got divorced and he went on to marry Margaret Dinsdale in 2017. Margaret's barrister Jonathan Davey KC said his client and James had met in 2008 and become friends, before beginning a 'romantic relationship' in 2014, setting up home together the following year. However, she had no idea whatsoever that he was still married, only learning of it after his death. And because he had not made a will, James' money would be divided between Dr Fowell and his son, William Dinsdale, 28, under intestacy rules. 'Margaret believed that she was validly married to James Dinsdale and there is no evidence that she knew that the deceased was married to Dr Fowell as at 2017," he said. 'She understood the marriage between the deceased and Dr Fowell to have ended some time prior to the relationship between the deceased and the claimant beginning. "We have no idea what James' state of mind was, perhaps he didn't realise he wasn't divorced. "Margaret's assertion is that she believed the deceased to be unmarried and already divorced when she married him in good faith." Touching on their 2017 wedding in Las Vegas, he noted: 'The ceremony which took place between James and my client took place in almost the same location, and appears to have been of the same nature, as the earlier ceremony which took place between the deceased and Victoria Fowell in June 2012. 'The marriage ceremony between him and Dr Fowell took place in the Little White Wedding Chapel, Las Vegas Boulevard. The marriage ceremony between James and Margaret took place in the Chapel of the Flowers, Las Vegas Boulevard. 'But for the deceased's prior marriage to Dr Fowell, the latter ceremony would have been a valid marriage ceremony." The case reached court for a preliminary hearing after Margaret made a claim for "reasonable provision" from James' estate under the 1975 Inheritance Act, amounting to at least half of his £1.8m. The case is being brought against Dr Fowell and James' adult son William, who are currently due to share his fortune as his next of kin under intestacy rules. Mr Davey said Margaret had looked after James "24 hours per day" during his final struggles with terminal cancer and was his "primary carer." 'The evidence of his close friends is that James and Margaret had a loving relationship, and that he was very grateful for her care," he told the judge. He said the couple had been together for six years and planned to have children, with Margaret giving up work and becoming a housewife while he provided for her. "She and James had a relatively lavish lifestyle, which was funded by his wealth and she was entirely financially dependent on the deceased," he said. 'Dr Fowell and William Dinsdale were not being financially maintained by the deceased at the time of his death." There was no evidence of 'financial need' on the part of Dr Fowell, claimed Mr Davey, highlighting claims by Margaret that James once told her he had transferred to her a property and a £2million lump sum after their relationship ended. The court heard it is alleged that Margaret has already received £375,000 "from the estate or in sums derived from James," but Mr Davey said that is denied and that she has only received £20,000 from his pension. After a brief court hearing in which he was told it was "not disputed" that Margaret should be considered a "spouse" under the 1975 Act, Master Brightwell made a declaration to that effect for the purposes of her claim against the estate. He directed that there should now be a future hearing focusing on how James' estate should be divided up between his two wives and son. Under the Inheritance Act, payouts to those treated as a spouse or civil partner are higher than to unmarried partners of a deceased person. The judge also allocated cash-strapped Margaret £50,000 from the estate to help cover her bills and contribute towards hefty lawyers' bills as the case progresses - with the projected costs on her side estimated at around £175,000.
