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The Hidden Scandal of Car Finance Mis-Selling: Sentinel Legal's Battle for Car Finance Compensation.

The car finance industry has been hiding a dark secret. Beneath the veneer of convenient payment plans and attractive car deals lies a web of undisclosed commissions, opaque practices, and outright exploitation.


At Sentinel Legal, we've spent years uncovering these practices and fighting for consumer justice.



2 men on the Sentinel Legal car finance claim podcast discussing car finance claims.
Sentinel Legal Car Finance Claims Podcast

Make a Claim Today

Live in the U.K. and have had a car on finance? ✅

You could be entitled to compensation.


The Road to Discovery

Our journey began in 2020 during the pandemic when car finance claims were virtually unheard of in the legal world. Back then, the concept of challenging lenders on undisclosed commissions was relegated to niche legal circles. Most cases were dismissed as minor complaints, and few had the resources to take these claims to court.


Through relentless effort, we began identifying systemic issues. A breakthrough occurred when our team filed Data Subject Access Requests (DSARs) to lenders, requesting complete documentation on clients' car finance agreements. Instead of full transparency, we received heavily redacted documents, often with key terms and commissions obscured by black boxes.


This marked the start of a four year investigation that would reshape how the industry operates.


Uncovering the Truth: The Black Box Scandal

One pivotal moment came when a lender's attempt to redact sensitive information failed. Instead of permanent redactions, the black boxes covering commission details were formatting errors. By peeling back these layers, we discovered damning evidence: commissions as high as 20% of the loan amount, plus hidden bonuses and incentives for dealers to upsell finance packages.


For instance, we uncovered cases where lenders paid dealers hundreds of thousands in "advance support budgets" funds tied to future sales that made impartiality impossible. The evidence was clear: dealers were incentivised to prioritise profit over the consumer’s best interest.


Persistent Efforts in Court

Taking these claims to court was no easy task. Initially, judges dismissed car finance claims as comparable to Payment Protection Insurance (PPI) cases. This dismissal overlooked the intricacies of how these agreements were structured and the significant harm to consumers.


At Sentinel Legal, we refused to back down. Armed with unredacted documents and a growing understanding of lender-dealer arrangements, we began filing claims on the fast track in court, where we could demand further evidence and disclosure. Over time, judges began recognising the unique nature of these cases, paving the way for broader recognition of consumer rights in this area.


The FCA and Supreme Court: A Turning Point

Our relentless efforts have not gone unnoticed. The Financial Conduct Authority (FCA) banned discretionary commission models in 2021, acknowledging the widespread harm caused by these practices. Additionally, the Johnson v Firstrand case at the Court of Appeal further highlighted lenders' responsibility for transparency.


With lenders set to appeal the decision to the Supreme Court in April 2025, the final verdict could set a landmark precedent for consumer rights.



The Financial Conduct Authority office
Financial Conduct Authority

Why Choose Sentinel Legal?

At Sentinel Legal, we’ve been at the forefront of this battle. Our team has issued claims for thousands of clients, making us the largest litigator of car finance claims in the UK. With years of experience, a vast database of lender practices, and cutting-edge legal strategies, we ensure every case is thoroughly examined and effectively prosecuted.

While some may claim you can handle these complaints on your own, the reality is far more complex.


We've spent years piecing together evidence, engaging with lenders, and navigating the courts. The result? Real compensation for our clients.



The Sentinel Legal Team
Sentinel Legal's Car Finance Claim Team

Make a Claim Today

Live in the U.K. and have had a car on finance? 

✅You could be entitled to compensation.


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Watch the Full Episode

Hear the full story and insights from our investigation in this podcast episode:


Frequently Asked Questions (FAQs)


1. What is car finance mis-selling?

Car finance mis-selling occurs when dealerships or lenders fail to disclose critical information, such as commission payments, or when they provide misleading advice that prioritises their profit over the customer’s best interests. This can lead to consumers paying higher interest rates than necessary.


2. How can I check if my car finance was mis-sold?

Start by reviewing your car finance agreement for vague terms like "a commission may be paid." You can also request a Data Subject Access Request (DSAR) from your lender to see all documents related to your deal. If key details about commissions or interest rates are missing, you may have a claim.


3. What compensation could I receive for mis-sold car finance?

Compensation varies depending on the terms of your agreement and the level of misconduct. Typical redress can include the unwinding of excess interest costs, reimbursement of hidden commissions, and statutory interest on these amounts.


4. Why should I use Sentinel Legal instead of filing a claim myself?

While it’s possible to make a claim independently, Sentinel Legal brings over four years of experience, proven litigation strategies, and an in-depth understanding of lender practices. We know the right questions to ask and have access to key evidence that can significantly improve your chances of success.


5. Is there a time limit to make a car finance claim?

Yes, claims are typically subject to a six-year limitation period from the date of the agreement or the date you became aware of the mis-selling. Sentinel Legal can help assess whether your claim falls within this timeframe.


6. What are the costs of using Sentinel Legal?

We operate on a no-win, no-fee basis. Our fee is 33% plus VAT of any compensation recovered. This ensures you won’t pay anything unless we succeed in winning your case.


7. What’s the next step if I believe I have a claim?

If you believe you’ve been mis-sold car finance, you can start your claim with Sentinel Legal by visiting our claim submission page. We’ll guide you through the process and handle the complexities on your behalf.


Make a Claim Today

Live in the U.K. and have had a car on finance?

✅You could be entitled to compensation.

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