Mercedes Benz snooped on customers who defaulted on car repayments through the use of in-car tracking technology.
The car manufacturer has said that new and used cars sold through a British dealership have location sensors installed.
The business has shared the resulting data with bailiffs and debt recovery firms, according to a report in The Sun.
Industry experts said that such technology is now standard in many new vehicles and is used to track stolen cars and send assistance in the case of breakdowns.
It is believed that as cars move towards self-driving, use of this technology will increase.
Mercedes said in a statement that the location tracking technology was only activated in vehicles on which payment leases are in default.
It pointed out that information about the location sensor is included in all finance agreements.