The Financial Conduct Authority said its joint taskforce with the Advertising Standards Authority, Solicitors Regulation Authority and Information Commissioner's Office is continuing enforcement against misleading motor finance claims marketing by claims management companies and law firms. In June, the FCA secured the removal or amendment of 170 misleading car finance claims adverts by claims management companies, taking the total since January 2024 to 1,200. It also agreed voluntary requirements with two firms to stop or change marketing activity, bringing the total number of such restrictions to 12 over the past 12 months, and issued eight alerts against unauthorised firms promoting regulated claims management services. The FCA said the problematic adverts included promotions disguised as consumer social media posts, references to the FCA motor finance redress scheme that could imply an affiliation with the regulator, failures to make clear that free claim routes exist, and marketing of claims management services without authorisation. In June it reviewed 255 promotions across 83 authorised firms and wrote to 36 where it found breaches of financial promotion rules or failures to meet Consumer Duty expectations. Alongside the FCA action, the Advertising Standards Authority launched formal investigations into motor finance claims adverts by law firms, focusing on fee transparency, whether consumers can claim for free through other routes, potentially exaggerated compensation claims and potentially misleading free checker tools. The taskforce said it will continue taking action against misconduct by claims management companies and law firms beyond misleading adverts, which could lead to further action against firms.

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