The issue of car finance mis-selling has come to light in recent years, with millions of consumers potentially overcharged due to undisclosed commissions embedded in their agreements. At Sentinel Legal, we’re leading the fight to help UK consumers uncover the truth and claim what they’re owed. This article dives into the complexities of car finance claims, shedding light on hidden commission practices, key case examples, and how you can determine if you're eligible to make a claim.
What Is a Mis-Sold Car Finance Agreement?
A mis-sold car finance agreement occurs when crucial details—like commission structures—are hidden from the customer. Many UK consumers entered into finance agreements with inflated interest rates, not realising that significant portions of their loan payments were going toward undisclosed commissions for brokers or dealers.
Two Key Types of Commission Models:
Discretionary Commission Models:
Dealers manipulated interest rates to increase their commission.
Fixed Commission Models:
Commissions were calculated as a percentage of the total loan amount, incentivising dealers to inflate loan sizes with add-ons or extras.
Shocking Examples of Mis-Selling
At Sentinel Legal, we’ve analysed hundreds of cases that reveal the shocking scale of hidden commissions:
Santander Case:
On a £81,000 Land Rover finance agreement, nearly 20% of the loan amount went to commissions. This included:
£9,781.09 in scale commission (12% of credit)
£4,279.23 in head office commission (5.25%)
£1,988.82 in outcome bonus (2.44%)
These commissions were hidden from the borrower, who unknowingly paid thousands more in inflated interest.
Black Horse Case:
In another example, a loan of £4,595.05 included £2,197.65 (47.83%) in commissions. Despite the consumer’s loan appearing straightforward, nearly half the loan’s value was paid to the dealership and lender as commissions.

Why Fixed Car Finance Commissions Are Just as Problematic as Discretionary Models
While discretionary commission models have received significant scrutiny, fixed commission models are equally damaging. In a fixed model, commissions are tied to the loan amount, incentivising dealers to:
Add extras like paint protection, extended warranties, or GAP insurance.
Roll in negative equity from a previous car loan.
Push consumers toward higher loan amounts rather than fair terms.
The Financial Conduct Authority (FCA) only recently announced they would investigate fixed commission models, which have gone under the radar for years.
How to Check If Your Car Finance Was Mis-Sold
If you’ve taken out a car finance agreement in the UK, it’s worth checking if you’ve been affected. Here’s how:
Review Your Agreement: Look for terms that mention commissions, interest rates, or add-on products.
Calculate Total Costs: Compare the loan amount to the total payable. Large differences may indicate excessive commissions.
Look for Signs of Mis-Selling:
Were you informed about commissions?
Did the dealership push additional products or services?
Was the interest rate significantly higher than expected?
Contact Sentinel Legal: Our team can review your agreement and determine if you have a claim.
How to Make a Car Finance Claim in 2025
Making a car finance claim doesn’t have to be complicated. Here’s a step-by-step guide:
Contact Your Lender: File a complaint with your lender’s complaints team. Include details of your agreement and why you believe it was mis-sold.
Escalate to the FCA or Financial Ombudsman: If your lender doesn’t respond or rejects your claim, you can escalate the complaint.
Work with Experts Like Sentinel Legal: We specialise in car finance claims and handle everything for you, ensuring the strongest case possible.
Stay Informed About Redress Schemes: The FCA is expected to roll out a redress scheme in 2026. Act now to prepare your case and avoid delays.
Why Choose Sentinel Legal?
As the UK’s leading experts in car finance claims, Sentinel Legal has:
Issued over 900 claims in court, making us the largest litigator in the country for motor finance claims.
Uncovered hidden commissions across major lenders like Santander, Black Horse, and more.
Secured millions in compensation for consumers.
We’re committed to fighting for transparency and ensuring consumers get the justice they deserve.
Ready to Make a Claim?
If you suspect your car finance agreement was mis-sold, don’t wait. Start your claim today:
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