Motor Finance
£43 Billion at Stake: Why Every Car Finance Lender Is Intervening in the Johnson Supreme Court Case
In a PCP claim case handled by Sentinel Legal, FirstRand Bank's own documents revealed that 43.66% of the total interest charged went into undisclosed commissions — and yet the lender argues they owe the client nothing.
Why the Rush to Intervene? What Are They Hiding?
The rush to intervene by the UK Treasury and other parties in the Johnson case raises significant questions. This sudden flurry of involvement isn't about clarity or fairness — it's about keeping critical facts hidden from the public.
In a PCP claim case handled by Sentinel Legal, FirstRand Bank provided heavily redacted documents. When examined, it was revealed that 43.66% of the total interest charged on a motor finance agreement was funnelled into undisclosed commissions. Despite this, the lender argues they owe the client nothing.
The FirstRand Bank Case: A Stark Example of Misconduct
Documents from FirstRand Bank reveal just how much consumers are paying in hidden commissions without their knowledge. In one motor finance agreement:
- **Total Interest Charged:** £5,090
- **Total Commission Paid:** £2,222.38
- - Dealer Commission (Pentagon Huddersfield Nissan): £334.34 (1.7% of total interest)
- - Volume Bonus Paid to Pentagon Head Office: £1,888.04 (9.6% of total interest)
43.66% of the total interest charged went directly into undisclosed commission payments — almost half of what the consumer paid in interest.
Even more disturbing: FirstRand Bank continues to argue they owe the client nothing, despite their own documents showing these hefty commissions.
What Are They Trying to Hide?
The Johnson case and others like it are bringing systemic mis-selling practices to light. The sudden surge of interventions is a desperate attempt to:
- **Shield Lenders from Accountability** — with billions in potential liabilities, lenders are scrambling to protect themselves.
- **Bury Damning Evidence** — cases like the FirstRand Bank example expose the truth: commissions as high as 43% are being siphoned from consumers' payments.
- **Delay Justice** — the rush to intervene is designed to slow down the legal process and dilute public awareness.
The Bigger Picture: How Widespread Is This?
The numbers show just how deeply entrenched these practices are:
- 31.7 million car finance agreements have been issued since 2007, with nearly 99% involving commission payments.
- In the 12 months to November 2024: £17.6 billion was borrowed for 625,000 new cars and £21.3 billion for 1.4 million used cars.
- Analysts estimate potential liabilities ranging from £10 billion to £43 billion.
Sam Ward, Director of Sentinel Legal
"The fact that every man and his dog is rushing to intervene tells you everything you need to know. They don't want the truth out there, and they'll do everything in their power to keep it hidden. The 43% commission paid in the FirstRand Bank case is a glaring example of why lenders can't be trusted."
"I would be surprised if the Supreme Court even takes notice of these interventions. The Supreme Court makes laws that outlast any government. The lord justices are thinking in terms of generational lengths of time and are there to interpret the law — nothing else."
The Bottom Line
The 43% commission payment in the FirstRand Bank case is just one example of the industry-wide scandal the Johnson case threatens to expose. The rush to intervene is a desperate move to keep these facts hidden, but Sentinel Legal is committed to ensuring the truth comes out and justice is served.