The journey to uncover the truth behind car finance mis-selling has been long and challenging. For over four years, Sentinel Legal has worked tirelessly to expose hidden commissions and help consumers reclaim compensation. With court victories, countless phone calls, and in-depth research, we’ve built a reputation as leaders in motor finance claims.
In this article, we share key insights from our investigations, highlighting the systemic issues in the industry and what this means for your claim.
🎙️ Listen to the full podcast episode here: https://youtu.be/Fg60aDniaJo
A Broken System: Hidden Commissions and Consumer Exploitation
During our investigations, we discovered that car dealerships and lenders prioritised profits over transparency. In some cases, cars were sold at a loss, with dealerships relying on commissions from finance agreements to make up the difference.
As revealed in the podcast, a key insider said:
“Sell the car for nothing, virtually no profit—because the money is made from the finance.”
This practice exploited consumers who believed dealerships earned primarily from car sales, not from inflated finance agreements.
Key Discoveries From the Podcast
The Importance of Persistence:
Over 50 calls with industry insiders in 2023 revealed the extent of training dealerships received to maximise commissions. Buzzwords were used to encourage customers to finance higher amounts, even for low-value cars.
Courtroom Challenges:
Judges were initially dismissive of car finance claims, drawing parallels to the PPI scandal and assuming the cases lacked merit. However, Sentinel Legal’s persistence in presenting clear, evidence-backed cases has shifted perceptions.
Complexity of Claims:
Many consumers were advised to make claims independently, yet without understanding the nuances of agreements or commissions, their complaints stalled. This highlights the importance of using experienced solicitors to navigate the system.
How Sentinel Legal Built a Winning Strategy
Our approach combines legal expertise and investigative work to uncover hidden practices:
In-Depth Research:
We analysed redacted documents and pushed for disclosure, revealing the true extent of lender-dealer relationships.
Collaboration With Barristers:
Zoom calls with chambers ensured every legal angle was considered, resulting in robust cases.
Data-Driven Insights:
With access to introducer agreements and commission structures, we can identify patterns of mis-selling across lenders like Santander and Black Horse.
One standout moment was the creation of a 300–400 page case bundle, submitted in 2024, which led to expedited case reviews and significant wins in court.
Why DIY Claims Often Fail
As discussed in the podcast, consumers encouraged to file claims independently often face obstacles:
Lenders Delay Responses:
Without professional representation, claimants wait weeks for replies.
Lack of Knowledge:
Many consumers don’t know how to respond when lenders reject complaints or claim there’s no commission evidence.
Complexity of Disclosure:
Solicitors like Sentinel Legal have spent years uncovering hidden commission structures, which is beyond the reach of most individuals.
“Anyone can make a complaint. But it’s what you do after the complaint that matters.”
This insight underscores the value of working with experienced legal teams who know the right questions to ask and how to hold lenders accountable.
What’s Next for Car Finance Claims?
The Supreme Court’s April 2025 hearing on the Johnson case will set a landmark precedent. If upheld, lenders will face stricter obligations, and the FCA may introduce a redress scheme for affected consumers.
“By the end of 2025, we expect a clearer path for compensation,” says Sam Ward, reflecting on four years of groundbreaking work.
In the meantime, Sentinel Legal is actively litigating live cases, building on evidence from previous claims to ensure fair outcomes for clients.
How to Make Your Car Finance Claim
If you suspect your car finance agreement was mis-sold, take these steps:
Review Your Agreement: Look for discrepancies in loan amounts and terms.
File a Complaint: Start with your lender’s complaints team.
Contact Sentinel Legal: With over 900 claims filed, we have the experience to navigate the complexities of your case.
Start Your Claim Today
At Sentinel Legal, we’re not just litigators; we’re advocates for transparency and fairness in the car finance industry. With significant victories and groundbreaking investigations, we’re here to help you reclaim what’s rightfully yours.
🎙️ Listen to the full podcast episode here: https://youtu.be/Fg60aDniaJo
Make a claim today:https://yt.sentinellegal.co.uk/start
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