FCA opens investigation over CMC’s motor finance claims

The Financial Conduct Authority (FCA) is ramping up pressure on claims management companies (CMCs) ahead of the expected launch of an industry-wide redress scheme relating to motor finance mis-selling claims, opening an enforcement investigation into The Claims Protection Agency Limited (TCPA) following concerns about its advertising and sales tactics.

The FCA is investigating what customers were told about the amount of redress they might obtain, whether they were told they could make a claim for free, and whether they were pressurised to sign up. The regulator said announcing the investigation allows TCPA customers to consider their options.

The FCA has not reached any conclusions on whether TCPA breached any regulatory requirements.  TCPA has used or uses a number of trading names, including My Claim Group, Martin’s Tips, Karen’s Claims, Express PCP, and The PCP Guys.

TCPA sought to challenge the FCA’s decision to open an enforcement investigation and applied for a judicial review, which was dismissed by the High Court, with the Court of Appeal refusing permission for an appeal.

The High Court’s judgment was released in two parts published in October 2025 and January 2026.  The hearings indicate that in July last year the FCA sent an eight-page Dear-Firm Letter to 18 regulated CMCs operating in the motor finance claims sector including TCPA.

This indicated one of the regulator’s key concerns was the exaggeration of potential claim values including whether, for example, a figure was given as an average or as a maximum (“up to”), or whether it is per claim, or per person. The FCA was also concerned about whether a CMC made it sufficiently clear when signing up a new customer that there are “free to claim alternatives”, or that an industry-wide redress scheme is likely to be set up.

This initiative was followed up by a bespoke letter to TCAP which described concerns about misleading communications relating to refunds, including content which had advertised “average” potential refunds of £4,000 and references to a possible £4,500 “per vehicle”.

This letter also raised additional topics including excessive chasing of customers who had begun onboarding but not continued and referred to complaints of being excessively chased as well as the sufficiency of the steps taken to identify and protect vulnerable customers.

The FCA’s latest move is part of an ongoing campaign of increased proactive monitoring of CMC activity. In July last year the FCA issued a joint statement with the Solicitors Regulation Authority warning CMCs and law firms to make sure they complied with rules around how motor finance commission claims should be handled.

In September, the FCA launched a £1 million advertising push alerting consumers to the issues around the use of CMCs for potential motor finance claims, notably exaggerations about the potential compensation and failure to signpost alternative lower cost approaches. This included teaming up with influencers, such as Cameron Smith (@cazza_time), to put the message across as well as ads on Instagram, TikTok and radio outlets.

The FCA consultation on its proposed motor finance consumer redress scheme closed in December 2025 and the regulator has said it will publish the final details in February or March. The proposals, which include a timeline for claims stretching back to 2007, have attracted criticism from lenders and a House of Lords select committee.