FCA warns on misleading car finance claims adverts
FCA warned consumers about misleading car finance 'money tips' adverts from claims management companies and law firms posing as impartial advice.
The FCA, via a joint regulatory taskforce, identified social media ads from CMCs and law firms disguised as independent advice to drive motor finance claims sign-ups. Lenders should anticipate elevated claims volumes and ensure complaint handling and Consumer Duty obligations are met.
Signals continued surge in motor finance claims activity affecting lender redress and operational risk.
Action Required
Monitor CMC and law firm promotions related to motor finance claims and ensure firm responses to claims align with regulatory expectations.
Motor finance claims remain a significant conduct and provisioning risk for UK lenders.
Strengthen complaint handling capacity for motor finance claims; monitor CMC-driven inbound volumes and ensure fair treatment under Consumer Duty.
“FCA warned consumers about misleading car finance 'money tips' adverts from CMCs and law firms on social media posing as impartial advice to drive motor finance claims sign-ups.”
Published: 2026-06-15