11:34 am, July 16, 2026
The FCA had 170 misleading car finance claims adverts removed or amended in June after launching a joint taskforce to crack down on the issue.
The watchdog has been working with the Advertising Standards Authority (ASA) to target claims management companies (CMCs), following a rise false adverts in response to the car finance compensation scheme.
The body has now had 1,200 misleading ads changed or amended since January 2024, as part of a wider drive to protect consumers.
In June, the FCA found one advert that was disguised as a consumer posting on social media recommending a website to look up agreements. However, the advert failed to make clear it was a financial promotion for a CMC that was recommending its own website.
In another case, a firm was using the FCA motor finance redress scheme in a misleading way to promote its own services which could suggest an affiliation with the FCA.
Others failed to clearly highlight free claim options and the FCA’s redress scheme and promoted claims management services when not authorised to do so.
The FCA also agreed to voluntary requirements (VREQs) with two firms, who have now agreed to stop or change their marketing activities.
The FCA also issued eight alerts in June against unauthorised firms promoting regulated claims management activities without the necessary authorisation.
At the same time, the ASA has launched investigations into various motor finance claims ads placed by law firms.
The regulator is scrutinising a range of issues including clarity around fees, the ability to claim for free via other routes, potentially exaggerated compensation amounts and consumers being potentially misled by ‘free checker’ tools.
Alison Walters, director of consumer finance at the FCA, said: ‘Consumers should be able to trust the information they see about car finance claims.
‘Too often, we are still seeing promotions that obscure key facts, create unnecessary pressure on consumers to sign up, or risk misleading people about their options.’
Miles Lockwood, director of complaints and investigations at the ASA, said: ‘The work of the taskforce is important, consumers should be treated fairly and be confident that the claims they see in ads for car finance schemes are transparent and truthful.
‘Our investigations will root out problem claims, set clear lines in the sand for advertisers and trigger follow-up enforcement action where necessary.’
The joint taskforce is continuing to take action against misconduct by CMCs and law firms that goes beyond misleading adverts. This could lead to further action against firms.
