Misleading motor finance claims by made by some claims companies and law firms are coming under increased scrutiny .
The Financial Conduct Authority (FCA), Advertising Standards Authority (ASA), Solicitors Regulation Authority and Information Commissioner’s Office (ICO)are tackling the poor handling of motor finance claims by some claims companies and law firms.
As part of the joint taskforce’s continued crackdown, in June the FCA had 170 misleading car finance claims adverts removed or amended by claims management companies (CMCs), bringing the total up to 1,200 since January 2024.
Some of the misleading adverts seen by the FCA were disguised as a consumer posting on social media recommending a website to look up agreements.
Tthe advert failed to make clear it was a financial promotion for a CMC that was recommending its own website.
Some companies were using the FCA motor finance redress scheme in a misleading way to promote the firm’s own services, which could suggest an affiliation with the FCA.
Failed to clearly highlight free claim options and the FCA’s redress scheme.
Alongside this, the Advertising Standards Authority (ASA) has launched investigations into various motor finance claims ads placed by law firms.
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.”
