Close Brothers received a boost yesterday after it won permission to appeal against a court ruling on motor finance that has stunned the industry.
The decision provides hope to it and other lenders caught up in the scandal over the way car dealers were paid commissions for selling loans to customers, which could leave lenders with a bill for billions of pounds.
The Financial Conduct Authority this year looked at whether some motorists who took out loans would be entitled to compensation.
But a separate ruling by the Court of Appeal widened the scope of the scandal to take in more types of commission.
Fees scandal: Close Brothers has won permission to appeal against a court ruling on motor finance that has stunned the industry
That has raised fears that it could reach the same scale as the payment protection insurance debacle, which cost the industry £50billion.
Shares in Close Brothers have been hammered and fell by as much as 50 per cent following the October court ruling but, after it yesterday said it had permission to appeal to the Supreme Court, rose 3.5 per cent, or 8.2p, to 246.2p.
Lloyds, which faces exposure to the scandal through its Black Horse motor finance arm, rose 2.4 per cent, or 1.28p, to 54.22p.
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