
Santander UK has reported a 38% drop in annual pre-tax profits, largely due to the growing car finance claims due to the car finance mis-selling scandal. While the bank has set aside £295 million for potential payouts, Moody’s estimates the total market impact could reach £30 billion a financial disaster that could redefine the car finance industry.
At Sentinel Legal, our investigations over the past four years have uncovered the shocking extent of Santander’s hidden commissions and dealer incentives and why Santander is likely to suffer the most as consumer claims escalate.
Santander Car Finance Claims - The Hard Evidence: What Sentinel Legal Has Uncovered
Our investigations into Santander car finance claims have revealed how Santander built its finance business on hidden commissions and undisclosed payments, inflating costs for consumers without their knowledge.
£14.96 Million in Advanced Commissions
Santander paid £14,962,500 in upfront commissions to a dealer network, tied to a £75 million loan commitment. This arrangement created a clear conflict of interest, forcing dealers to prioritise Santander’s products over potentially better finance options for consumers.
🔗 Learn more about how these practices impacted PCP claims here.
£16,049 in Hidden Commissions on a Single Land Rover Agreement
In one Santander agreement, a customer financed an £81,509.05 Land Rover, unknowingly paying £16,049.14 in commissions, broken down as follows:
£9,781.09 in scale commission (12% of the credit amount)
£4,279.23 in head office commission (5.25%)
£1,988.82 as an outcome bonus (2.44%)
That means 19.69% of the total amount financed and a staggering 61% of the overall cost of credit was commission, without the consumer’s knowledge.
🔗 Read how hidden commissions inflate car finance costs here.
Why Santander Will Feel the Most Pain
The Court of Appeal ruling in Johnson v FirstRand Bank established that dealers and lenders must act in the best interest of consumers. Santander’s finance agreements make this impossible.
Why Santander Faces the Biggest Risk
Regulatory Crackdown – The FCA estimates that 31.7 million car finance agreements could be affected.
Legal Challenges – Sentinel Legal has already filed over 1,500 claims, with over £500,000 recovered for clients.
Public Trust at Risk – With profits down 38%, Santander is already feeling the effects of growing litigation and consumer awareness.
🔗 Read about how FCA regulations are impacting Santander and other lenders here.
Sam Ward, Sentinel Legal Director, on Santander’s Profit Drop
"Santander’s 38% profit drop is no surprise. Our investigations over the last four years have exposed how lenders like Santander have built their business models on hidden commissions and undisclosed payments."
"In one case, we found £16,049.14 in hidden commissions on an £81,509.05 Land Rover finance agreement, that’s 19.69% of the total amount financed and an astonishing 61% of the overall cost of credit. Consumers were unknowingly paying thousands to fund dealer incentives, and this is just one example of an industry wide practice."
"We also uncovered £14.96 million in advanced commission payments, tied to a £75 million loan commitment from dealers to Santander. This shows clear financial incentives that made it impossible for dealers to act impartially and in the best interests of consumers."
"With Moody’s estimating the total impact of car finance mis-selling at £30 billion, Santander’s losses are just the start. Consumers deserve answers, and Sentinel Legal is leading the fight to uncover the truth."

Frequently Asked Questions (FAQ)
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, leading to inflated costs for consumers.
2. How do I know if my car finance agreement includes hidden commissions?
If you financed a car through a dealer since 2007, there’s a high chance your agreement included hidden commissions. Sentinel Legal can investigate your finance agreements and uncover any mis-sold terms.
3. How much compensation could I receive?
Compensation varies depending on the agreement, but many of our clients recover thousands of pounds. One recent claim uncovered £16,049.14 in hidden commissions on a single finance deal.
4. Why is Sentinel Legal the right choice for handling my claim?
With over £500,000 recovered for clients and 1,500+ claims issued, Sentinel Legal is the UK’s leading expert in car finance mis-selling. Our process is quick, secure, and completely no-win, no-fee.
5. What’s my next step?
Simply start your claim. It only takes a minute, and we’ll handle the rest.
What Should You Do If You’ve Had Car Finance?
Sign Your Conditional Fee Agreement (CFA)
it only takes a minute.
We Investigate Your Agreements
we’ll uncover any hidden commissions or mis-sold terms.
Get Your Money Back
we handle everything on a no-win, no-fee basis.
Stay Connected & Listen to the Sentinel Legal Podcast
At Sentinel Legal, we are the UK's leading experts in car finance claims. We regularly discuss our findings within the car finance scandal and what we are doing to ensure transparency, accountability, and justice in for our clients with car finance claims.
Stay updated with the latest news, investigations, and insights by following us and tuning into our podcast:
📲 Follow Us on Social Media 📸 Instagram: @SentinelLegal_ 🎵 TikTok: @SentinelLegal 📺 YouTube: Sentinel Legal 🐦 X (Twitter): Sentinel Legal
🎙️ Listen to the Sentinel Legal Podcast
Spotify: Sentinel Legal
Apple Podcasts: Sentinel Legal
The Bottom Line
Santander’s 38% profit drop is just the start. With the £14.96 million advanced commission and the £16,047 Land Rover case, it’s clear that Santander is deeply entrenched in the car finance mis-selling scandal. As more consumers come forward, the financial impact will only grow.
At Sentinel Legal, we are leading the fight for transparency, accountability, and justice.
🔗 Read more about Santander’s hidden commissions in our latest investigations here.