A £1 million campaign has been launched to let motor finance customers know they don’t need to use a claims management company (CMC) or law firm to access an industry-wide compensation scheme the regulator is proposing.
As part of the campaign, which will feature radio and online advertising, the Financial Conduct Association (FCA) is teaming up with influencers to get the message to consumers.
New research commissioned by the FCA shows that 79% of motor finance customers are aware that they may be owed compensation. However, 41% of those aware they may be owed compensation didn’t know they would not need to use a claims management company or law firm if a redress scheme is introduced. Using a CMC or law firm to make a motor finance claim could cost consumers around 30% of any compensation paid.
Of motor finance holders aware of the possibility of being owed compensation, 25% have already made a claim and a further 39% intend to. Among those who have already made a claim, just under half (46%) did so using a claims management company or law firm.
The FCA has recently warned consumers about scammers pretending to be car finance lenders and falsely claiming that people are owed compensation, despite there being no car finance compensation scheme in place yet. Consumers should hang up immediately and not share any information if they receive calls like this.
The FCA plans to launch a consultation on the compensation scheme in early October. If the compensation scheme goes ahead, the first payments should be made in 2026.
The FCA recently issued a joint statement with the Solicitors Regulation Authority warning CMCs and law firms over poor practices in motor finance commission claims. Concerns include the volume and accuracy of marketing materials, and how information is shared or verified when clients are passed on from third parties. The FCA has also required CMCs to remove or amend 396 motor finance commission promotions between January 2024 and August 2025.
See the BVRLA’s Commission Disclosure hub for resources and information following the Supreme Court judgement.
