The Competition Appeal Tribunal (CAT) approved a minimum payout of £25 for participants in the car delivery charges collective action, a case that could return up to £56 million to consumers and businesses.
Settlement structure and timeline
The total settlement amounts to £93 million. Of that, £34 million covers costs, fees and disbursements, while the remaining balance is earmarked for claimants.
Charges relate to the fees charged for shipping 17 million new cars and vans to the UK between October 2006 and September 2015. Five different defendants have now settled.
Payout calculations
Claimants receive the minimum payout for the first vehicle, an additional £5 for each of the next five vehicles, and at least £2.50 for every eligible vehicle thereafter. An extra amount of the same size may be added depending on total claim numbers.
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Payments can be sent via bank transfer, Open Banking, PayPal, Nectar points, vouchers or charitable donation options.
Assumptions and judicial comments
Class representative Mark McLaren projected take-up rates of 5% for private owners, 10% for businesses, 60% for Motability users and 75% for fleet operators. Judge Hodge Malek KC warned that actual participation could be materially lower.
One defendant suggested a starting payment of £15, calling the minimum payout a “windfall.” The judge rejected that view, noting the first-vehicle amount also serves to motivate claimants to engage with the process.
Residual funds and claim process
If the guaranteed pool is not fully spent, the surplus will go to the Access to Justice Foundation. An extra £22 million is available should take-up exceed expectations; otherwise, unused funds may cover remaining costs or revert to early-settling defendants.
Processing a claim for up to six vehicles requires only the brand name and a signed statement of truth. Companies listed in the Driver and Vehicle Licensing Agency fleet database will automatically receive a summary of eligible vehicles and the corresponding compensation.
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Outreach strategy
The tribunal praised the “substantially more ambitious” communications plan, which blends traditional media, digital ads, social channels and partnerships with consumer groups such as Which?, MoneySavingExpert and the British Vehicle Rental and Leasing Association.
Engagement with Motability, local authorities and the Nectar loyalty scheme is also highlighted as a key element of the outreach.
Monitoring and final reporting
Mr McLaren will submit monthly progress updates to the tribunal. His firm, Scott+Scott, is tasked with delivering a final report that assesses the distribution’s effectiveness and any lessons learned.
“We’ve done everything we can to make this process as easy as possible for those affected,” Mr McLaren said. “This settlement has been secured on behalf of consumers and businesses who were overcharged for new vehicles, because of hidden agreements between companies they’d never heard, which secretly cost them money. They now deserve to get that money back.”
