Reaves’s intervention in car loan case rejected

Chancellor Rachel Reeves’ attempt to intervene in a historic court case on controversial car loan has been blocked by the Supreme Court of the UK.

The case of the Supreme Court set in April will rule on whether the lenders should be clearly told to the customers how much commission they were making by selling car loans.

The Court of Appeal had clarified the lenders last year, but the lenders are appealing for the decision in the April case.

Due to the concerns of the April decision, the Treasury tried to intervene last month, which will reduce the availability of car loans. Treasury told the BBC that it respects the decision to block its intervention on Monday.

Shares fell today in Britain banks involved in the case, with Lloyds Banking Group 4% and close with Close Brothers Group fell nearly 15%.

A spokesperson of the Treasury said: “We respect the court’s decision not to give our application to intervene … and will monitor it closely”.