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The Financial Conduct Authority (FCA) has issued a warning to consumers about misleading adverts from some claims management companies (CMCs) and law firms relating to motor finance compensation claims.
The regulator has identified a growing number of advertisements on social media that appear to offer independent financial guidance but are, in fact, paid promotions encouraging consumers to sign up for claims services. The FCA has raised concerns about adverts that do not clearly identify commercial intent, misuse logos or imagery associated with trusted organisations, or fail to make clear that consumers can pursue complaints themselves free of charge.
The FCA has already taken action against several firms and confirmed that further regulatory action will be taken where necessary. The announcement forms part of the work of a joint regulatory taskforce established to address poor practices within the motor finance claims market.
The FCA is reminding consumers that they do not need to use a claims management company or law firm to make a motor finance complaint and has published information on its website explaining the available options.
Further details are available on the FCA website: Consumers warned about misleading car finance 'money tips' claims ads.
