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Close Brothers received a boost yesterday after gaining permission to appeal against a car finance court ruling that has stunned the industry.
The decision provides hope to him and other lenders caught up in the scandal over the way car dealers received commissions for selling loans to customers, which could leave lenders with a bill of billions of pounds.
The Financial Conduct Authority this year examined whether some drivers who took out loans would be entitled to compensation.
But a separate Court of Appeals ruling expanded the scope of the scandal to encompass more types of commissions.
Fees scandal: Close Brothers granted permission to appeal against a car finance court ruling that has stunned the industry
This has raised fears it could reach the same scale as the payments protection insurance debacle, which cost the industry £50bn.
Shares in Close Brothers have been battered, falling as much as 50 per cent following the court ruling in October, but after it said yesterday it had permission to appeal to the Supreme Court, they rose 3.5 per cent, or 8 .2p, up to 246.2p.
Lloyds, which is tackling the scandal through its Black Horse motor finance arm, rose 2.4 per cent, or 1.28 pence, to 54.22 pence.
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