Several of the UK's biggest car loan providers, including Black Horse, have appealed to senior judges to block mass lawsuits alleging mis-selling. Eight lenders want the Court of Appeal to prevent law firm Barings from bringing group litigation on behalf of thousands of motorists, potentially steering claimants toward the established industry-wide redress process.

The case centers on the multibillion-pound motor finance scandal stemming from commission payments to dealerships. The Financial Conduct Authority operates a £9.1bn redress scheme covering 12.1mn car loans with average payouts of £829 each. Law firms claim they can secure higher compensation through the courts, creating a battle over claimants' preferred route to restitution.

Lenders argue individual claims should proceed in County Court rather than through omnibus proceedings, which they claim would force many valid cases into the "small claims track" where legal costs can't be recovered. The High Court previously approved the Barings approach, but the FCA chief executive warns consumers risk being left empty-handed if they pursue claims individually.