The FCA and its partner regulators have stepped up their crackdown on misleading car finance claims advertising. In June alone, 170 misleading adverts by claims management companies were removed or amended, bringing the total to around 1,200 since January 2024.
What has happened?
The FCA, the Advertising Standards Authority, the Solicitors Regulation Authority and the Information Commissioner’s Office are working together as a joint taskforce to tackle poor practice in motor finance claims. On 16 July 2026 they reported their latest results. Examples of the problems found include adverts disguised as ordinary consumers posting on social media, adverts that used the FCA’s motor finance redress scheme in a way that could suggest an affiliation with the regulator, adverts that failed to highlight the redress scheme and free routes clearly, and firms promoting claims management services without authorisation. The FCA also agreed voluntary requirements with two firms to stop or change their marketing.
What does this mean for car finance customers?
Millions of people are potentially in scope of the FCA’s motor finance redress scheme, and where there is a large pool of potential claimants there will always be some who try to take advantage of it. The regulators’ message is that consumers should be careful about who they engage with and what they are told.
We think that scrutiny is a good thing. Honest, clearly explained representation matters, and firms that mislead people about fees, timescales or their connection to the regulator damage trust for everyone. If you dealt with a discretionary commission arrangement on a car finance agreement, your lender should be in touch under the redress scheme, and if you disagree with an outcome the Financial Ombudsman Service can consider a complaint about a firm that is still trading.
What should you do next?
If you would like an honest view on where you stand, have a free, no obligation consultation with us. We will tell you plainly what your options are, including the ones that do not involve us. No outcome is ever guaranteed, and anyone who tells you otherwise is not being straight with you.
Source: FCA press release, 16 July 2026
