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Industry News & Information

Santander Car Finance Claims - £14Million Hidden Commission.

£14.96 Million Hidden in a Santander Car Finance Claim


Santander Car Finance Claim image
Santander Car Finance claim

At Sentinel Legal, we’ve uncovered shocking practices in the car finance industry as part of our 4 year investigation into car finance claims, that prioritise profits over fairness.

One of our most recent discoveries revealed £14,962,500 in advanced commissions paid by Santander to a dealer network in exchange for securing £75 million in loans.

These payments, combined with cases like the £16,047 hidden commission on an £81,000 Land Rover, highlight how widespread and systemic mis-selling practices are, and how much consumers are paying for them.

Santander Advanced Commission
Santander Advanced Car Finance Commission

What We Discovered in a Santander Car Finance Claim Dealer Agreement

The Santander operating agreement revealed a staggering £14.96 million commission, paid upfront to a dealer network as an "Introductory Head Office Commission." 

This payment wasn’t just a reward, it was tied to a commitment from the dealer network to deliver £75 million in loans, ensuring Santander’s financial dominance at the expense of consumers.

🔗 Want to know more about how we handle PCP claims? Learn here.


This arrangement creates a significant conflict of interest:

  • Dealer Bias: Dealers were incentivised to push Santander products, regardless of whether they were the best option for their customers.

  • Failure to Act Impartially: The Court of Appeal’s Johnson v FirstRand Bank ruling made it clear that dealers must act with a duty of disinterest, but agreements like Santander’s make impartiality impossible.


📖 We recently covered the significance of the Court of Appeal’s ruling in detail. Read here.


Sam Ward Director of Sentinel Legal speaks with GB News team
Sentinel Legal speaks to GB News

The Land Rover Case: £16,047 in Hidden Commissions

The hidden commission issue isn’t just limited to larger car dealers. Sentinel Legal have found in other clients with Santander car finance claims, that an £81,000 Land Rover through Santander, unaware of the £16,047 in hidden commissions embedded in the agreement.


Here’s how the breakdown looked:

  • £9,781.09 in scale commission (12% of credit amount)

  • £4,279.23 in head office commission (5.25%)

  • £1,988.82 as an outcome bonus (2.44%)


These figures show how consumers unknowingly pay for dealer incentives, adding significant costs to their agreements without ever being informed.


How Hidden Commissions Impact You


What This Means for Consumers

The FCA has estimated that 31.7 million car finance agreements could be affected by similar practices. These hidden fees and undisclosed payments mean:


  • Inflated Costs: You may have paid far more than necessary on your finance agreement.

  • Lack of Transparency: These commissions are rarely disclosed, breaching the trust between dealers and consumers.

  • Legal Violations: Agreements like these fail to meet the standards set by landmark rulings, such as the Court of Appeal’s emphasis on impartiality.


🔗 Read about the FCA’s pledge for clarity on car finance claims in 2025 here.


How Sentinel Legal Fights for Justice

At Sentinel Legal, we’ve already recovered over £500,000 for clients affected by car finance claims, and our investigations continue to expose the industry’s failings. As seen on BBC, GB News, and City AM, we are trusted experts in tackling these issues head on.


Here’s how we help:


  1. Uncover Hidden Fees: Using advanced AI tools, we identify undisclosed commissions and inflated costs.

  2. Build Strong Claims: Every claim is backed by evidence, ensuring the best chance of success.

  3. Deliver Results Quickly: Within 72 hours, we’ll update you on your agreements and potential compensation.


🔗 Curious about real client success stories? See our recent wins.


Frequently Asked Questions


1. What are hidden commissions in car finance agreements?

Hidden commissions are payments made by lenders, like Santander, to dealers or brokers for securing finance agreements. These commissions are often undisclosed to consumers, leading to inflated costs on finance agreements.


2. How do I know if my car finance agreement includes hidden commissions?

If you financed a car through a dealer, especially since 2007, there’s a high chance your agreement may include hidden commissions. At Sentinel Legal, we use advanced tools to analyse agreements and uncover these charges.


3. How much compensation could I receive?

Compensation varies depending on your agreement, but many of our clients recover thousands of pounds. For example, one client found over £16,047 in a single claim.


4. Why is Sentinel Legal the right choice to handle my claim?

With over £500,000 recovered for clients and a proven track record of uncovering hidden practices, Sentinel Legal is the UK’s leading expert in car finance claims. Our process is quick, secure, and no-win, no-fee.


5. How long does the claims process take?

Once you sign your Conditional Fee Agreement (CFA), we typically provide updates on your claims and potential compensation within 72 hours.


6. What’s my next step?

Simply sign your CFA here. It only takes a minute, and we’ll handle the rest.


What Should You Do If You’ve Had Car Finance?

If you’ve financed a car, van, motorhome, or bike since 2007, you could be owed thousands in compensation. Here’s how to take action:


  1. Sign a Conditional Fee Agreement (CFA) it only takes a minute.

  2. Let Us Investigate: We’ll review your agreements and uncover any mis-sold terms.

  3. Get Results: We’ll recover what’s owed to you, with no risk and no upfront fees.



The Bottom Line

Santander’s hidden commissions, whether it’s the £16,047 Land Rover case or the £14.96 million dealer agreement, are just the tip of the iceberg.


These practices reflect an industry built on opacity and conflicts of interest, and at Sentinel Legal, we are here to bring transparency and justice to every affected consumer.


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Sentinel Legal Podcast - Supreme court Johnson V FirstRand


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