Emma RadmoreThe FCA has formally warned CMCs that they must ensure any financial promotions they put out about motor finance claims are Consumer Duty compliant. It has had increasing interaction with CMC firms and, between 1 January 2024 and 30 June 2025 has engaged with 14 firms in particular who specialise in motor finance claims, and the interactions have resulted in 225 promotions being amended or withdrawn.
The FCA has many concerns that ads on various media may breach CMCOB and the Duty by:
- exaggerating potential claim values;
- falsely implying that funds have already been secured or are guaranteed;
- falsely suggesting there is more urgency to claiming than is the case;
- indiscriminately suggesting that they are making contact because they know of the existence of a motor finance agreement; and
- signing up customers without consent when the customer just clicks on an ad and provides their details.
The FCA stresses firms must not use clickbait promotions, or mislead customers as to whether compensation is guaranteed or the timescales for claiming it.