Are the Vultures Circling Again?
What happened? The FCA published its final motor finance redress scheme on 30 March. It covers 12.1 million agreements from 2007 to 2024. It is free to use. Average payouts are estimated at £829. The scheme is, by the standards of British financial redress, genuinely accessible.
If you have any memory of the PPI scandal, the past few weeks will have felt disconcertingly familiar. A regulatory compensation scheme was announced. And almost before the ink is dry, a well-organised chorus warning the public that the official process cannot be trusted and that a no-win, no-fee lawyer is, perhaps, their wisest friend.
FCA Issues First-Ever CMC Fine — PPC Fined £70,000 for Misleading Consumers
Professional Personal Claims (PPC) received the FCA’s first enforcement action against a claims management company. PPC was fined £70,000 for using misleading websites displaying logos of five major banks, causing consumers to believe they were submitting PPI claims directly to their banks rather than through a third-party CMC. Sources FCA fines PPC for misleading consumers and banks
Hall and Hanley Fined £91,000 for Forged Signatures on PPI Claims
Claims management company Hall and Hanley was fined £91,000 by the FCA for insufficient due diligence on third-party marketing data, sending marketing texts without consent, and submitting PPI claims supported by forged customer signatures on letters of authority. Sources Financial Reporter: FCA secures fines against two claims management companies Pinsent Masons: FCA confirms first fines of claims management companies
FCA Opens Enforcement Investigation into ‘The Claims Protection Agency’ Over Motor Finance Claims
The FCA opened an enforcement investigation into The Claims Protection Agency (TCPA), which operated under brands including “My Claim Group” and “Martin’s Tips” for motor finance commission claims. TCPA was subject to voluntary requirements halting all new client onboarding and advertising. Its judicial review challenge against the FCA was dismissed by the High Court in October 2025. Sources FCA opens investigation into claims management company
FCA and SRA Issue Joint Warning Over Motor Finance Commission Claims
The FCA and SRA issued a joint warning to firms and law firms representing motor finance commission claims. Since January 2024, the FCA had removed or amended over 740 misleading advertisements and required nine law firms to provide information about their exit fees. The regulators flagged concerns about misleading marketing, lack of fee transparency, and firms pressuring consumers into binding agreements. Sources FCA and SRA warning on motor finance commission claims Regulators join forces to tackle poor claims management practices
