£41 Billion Industry Exposed The True Scale of the Motor Finance Mis-Selling Scandal

Sentinel Legal

The True Scale of the Motor Finance Mis-Selling Scandal: £41 Billion Industry Exposed
In this eye-opening episode of the Sentinel Legal Podcast, we dive deep into the shocking reality of the UK motor finance industry and uncover the true extent of the car finance mis-selling scandal. Based on extensive research and data from sources like the Finance and Leasing Association and real-world insights from Sentinel Legal’s successful litigation cases, we break down just how widespread the problem really is.
Did you know that in 2022 alone, £41 billion worth of car finance loans were created in the UK? That's 2.18 million car finance agreements, affecting everyday people like you and me. 🚗 But what does that mean for you? The average car finance agreement was £18,772, and thanks to the car finance mis-selling scandal, the average redress owed per individual is around £2,391.
But it doesn’t stop there.
The Financial Conduct Authority (FCA) conducted their own research and revealed that 75% of car finance agreements in the UK were mis-sold due to unfair discretionary commission structures. This meant lenders and dealers could hike up interest rates to earn bigger commissions, all at the expense of consumers. As a result, £1.9 billion in compensation is owed to consumers who took out car finance agreements in 2022 alone!
Across the years, the numbers are staggering:
- In 2019, at the height of the motor finance boom, £2 billion in compensation is still owed.
- From 2009 to 2022, over £861 million in compensation needs to be paid out due to mis-sold car finance contracts.
At Sentinel Legal, we've been leading the charge in motor finance mis-selling litigation, winning hundreds of cases for our clients. We’ve used this wealth of information to calculate just how much compensation could be owed to you.
But why hasn’t more been done?
In response to this growing scandal, Sentinel Legal took decisive action. We wrote a letter to the UK government, specifically addressing Rachel Reeves, the Chancellor of the Exchequer, and Angela Rayner, the Deputy Prime Minister, to highlight the sheer magnitude of the motor finance mis-selling issue. We presented them with these shocking figures and urged the government to take action and ensure that consumers across the UK receive the compensation they are rightfully owed.
This is more than just a financial issue—it’s a consumer rights crisis.
If you’ve had a car on finance at any point in the last decade, there’s a good chance you’ve been affected by this scandal. In this episode, we lay out all the numbers and explain what this means for you, and how Sentinel Legal is fighting for justice on behalf of car finance consumers across the country.
Tune in to find out how much you could be owed and why this issue is only growing larger by the day.
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