Regulators Crack Down on Rogue Car Finance Claims Firms — What Drivers Need to Know

A joint taskforce of UK regulators is tightening the net on claims management companies (CMCs) that have been chasing drivers with misleading car finance compensation adverts. If you've had a text, email or call promising a payout for mis-sold car finance, here's what's real and what to watch out for.

What's happening

The FCA, the Solicitors Regulation Authority, the Information Commissioner's Office and the Advertising Standards Authority formed a joint taskforce in March 2026 to tackle unsolicited and misleading marketing, meritless claims, and unfair exit fees charged by some CMCs and law firms.

In June alone, the taskforce had 170 misleading car finance adverts removed or amended, taking the total to 1,200 since January 2024. More than 28,000 consumers have been let out of CMC contracts free of charge, and three firms have cut unreasonable fees, protecting over 500,000 people.

The FCA has also opened an enforcement investigation into a second CMC, Consultation Claims Limited, over allegations that some customers were signed up between April and December 2025 without proper consent — with claims that signatures were forged in some cases. Twelve firms are now operating under voluntary requirements restricting how they can market to consumers.

Why it matters

This sits alongside the FCA's confirmed motor finance redress scheme, under which millions of car finance customers are due payouts this year over historic commission mis-selling. That legitimate scheme has created an opening for opportunistic CMCs to charge fees for something drivers can often do themselves for free.

How to protect yourself

• Check whether you actually had car finance with a discretionary commission arrangement before responding to any claim text or call.
• Go directly to your lender or use the FCA's official redress process rather than signing with a CMC that takes a cut of any payout.
• Never sign a claims agreement under pressure from a cold call — you have a statutory 14-day cooling-off period.
• Use the FCA's Financial Services Register to check a firm is authorised before handing over any details.
• If you've already signed with a CMC and want out, you may be able to cancel free of charge under the taskforce's recent interventions — contact the firm in writing and reference the ongoing regulatory action.
• Report suspicious adverts or forged-signature concerns to the FCA via its consumer contact centre.

Key Numbers

• 1,200 misleading adverts removed or amended since January 2024
• 28,000+ consumers released from CMC contracts free of charge
• 12 firms under voluntary marketing restrictions

Sources

• Joint taskforce continues crack down on misleading car finance claims adverts – FCA
• FCA launches investigation into second motor finance claims management company
• FCA confirms motor finance consumer redress scheme

Educational content only — not financial advice.