A Milestone Win for Justice in Motor Finance Mis-Selling
At Sentinel Legal, we’re thrilled to announce a recent Car Finance Claim court victory that reinforces our commitment to securing justice for consumers affected by motor finance mis-selling. This case is a testament to the hard work of our legal team and the tenacity of our experts, proving once again that fairness and transparency must prevail in the car finance sector.
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Live in the UK and had a car on finance?
✅ Don’t wait, take action now and start your journey to compensation with Sentinel Legal.
The Case Details
Claimant: Represented by Sentinel Legal
Defendant: Black Horse Limited
Case Type: PCP (Personal Contract Purchase)
Court: Stoke on Trent County Court
Outcome: Claim settled in favour of the client during trial proceedings.
This case centred around the defendant’s failure to disclose significant commissions paid to the broker involved in arranging the finance agreement.
This non-disclosure resulted in an unfair financial relationship, as confirmed by the Court of Appeal’s landmark ruling in Johnson v FirstRand Bank.
Our client's victory is another step toward holding finance providers accountable for the lack of transparency in their agreements, particularly regarding undisclosed commissions that can significantly inflate the cost of credit.
Why This Win Matters
Black Horse Limited’s practices in this case highlighted several industry-wide issues:
Undisclosed Commissions:
A staggering 70% of the credit cost went towards hidden broker commissions, leaving our client unaware of the true terms of their agreement.
Conflict of Interest:
The lack of impartiality in the broker-client relationship violated FCA guidelines and undermined consumer trust.
Precedent-Setting Impact:
Cases like these build on the momentum of Johnson v FirstRand, ensuring fair treatment for future claimants.
This win is not just a victory for our client but for all consumers subjected to similar practices. It sends a clear message to lenders and brokers: transparency and fairness are not optional.
The Financial Impact of Car Finance Claims
Total Claim Settlement: £2,756
Legal Fees Recovered: £455 (issue fee) + £346 (hearing fee)
This outcome resulted in a financial redress that not only reimbursed our client but also highlighted the importance of fair financial arrangements. For many claimants, this compensation is life-changing, helping them reclaim what was rightfully theirs.
Frequently Asked Questions (FAQ)
1. What is motor finance mis-selling?
Motor finance mis-selling occurs when lenders or brokers fail to provide clear, transparent information about finance agreements, such as hidden commissions or unfair terms, leading to financial harm for the consumer.
2. What does the Johnson v FirstRand Bank ruling mean for consumers?
The ruling established that car dealers acting as brokers owe a duty of care to consumers and must disclose any commissions. It also confirmed that undisclosed commissions can create an unfair financial relationship, making many finance agreements eligible for compensation claims.
3. How much compensation can I claim?
On average, claimants receive around £2,391 per claim. However, the exact amount depends on your finance agreement and the extent of the mis-sell.
4. How long does the claims process take?
The duration varies depending on the complexity of your case. Most cases settle within 6-12 months, but some may progress to court if necessary.
5. How do I know if I’m eligible to claim?
Eligibility typically depends on whether your finance agreement involved undisclosed commissions, unfair terms, or a breach of duty by the broker or lender. Contact Sentinel Legal for a free claim assessment.
The Car Finance Claims Process: What to Expect
Here’s a step-by-step breakdown of how Sentinel Legal handles your case:
Initial Assessment: Our experts evaluate your case based on your finance agreement and transaction details.
Open Banking Review: Using cutting-edge technology, we analyse your financial data to uncover hidden commissions or unfair terms.
Claim Submission: We file your claim with the relevant parties, backed by robust evidence.
Negotiation or Litigation: If necessary, we represent you in court to secure the compensation you deserve.
Settlement and Redress: Once settled, compensation is paid directly to you, minus our agreed fee of 33% + VAT.
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Make a Car Finance Claim Today
Live in the UK and had a car on finance?
✅ Don’t wait, take action now and start your car finance claim with Sentinel Legal.
