Authorities warn against misleading promotions linked to compensation claims

LONDON - UK regulators are increasing scrutiny of marketing activity linked to the car finance scandal after millions of complaints were made about unsolicited calls, texts and emails promoting car finance claims and PCP claims.

The Information Commissioner’s Office said it has received around 6 million complaints since January, with roughly 100,000 consumers contacting the regulator each day [1] over unwanted marketing related to car finance compensation and expected payouts 2026.

FCA car finance scheme drives increase in claims activity

The rise in advertising follows the launch of the FCA car finance compensation scheme, which could lead to billions of pounds being paid to motorists affected by mis-sold car finance and hidden commission arrangements.

As awareness of the car finance scandal grows, more drivers are exploring whether they may qualify for a car finance claim or PCP compensation claim linked to historic vehicle finance agreements.

Regulators are now working together to ensure consumers are protected from misleading promotions and poor practices as demand for support with car finance claims increases.

Joint regulatory action underway

The FCA, ICO, Advertising Standards Authority and Solicitors Regulation Authority have formed a joint effort to monitor the growing claims market [2] and investigate businesses that breach advertising or data protection rules.

Authorities said enforcement activity will focus on misleading communications, nuisance marketing, unfair contract terms and businesses submitting weak or duplicate claims.

The ICO confirmed it already has active investigations underway.

Consumers urged to choose support carefully

Industry experts have stated that many consumers could still require professional support when applying for a car finance refund or PCP refund, due to the complexity of the FCA car finance process, as well as the ongoing legal disputes surrounding the scheme. However, motorists have been urged to research firms in detail before signing any agreements. Consumers that are looking for assistance with a car finance refund check or compensation claim should ensure that providers are clear and transparent about fees, processes and terms before proceeding.

Millions continue checking eligibility

The FCA estimates that millions of agreements may fall within the scope of the compensation scheme, with motorists increasingly reviewing old finance agreements to determine whether they were affected by car finance mis-selling.

Drivers who were unaware of commission arrangements on PCP or hire purchase agreements may still qualify for car finance compensation once the legal process surrounding the scheme progresses further.

Payouts 2026 still face uncertainty

Despite rising demand for compensation, legal challenges against the FCA car finance scheme continue to create uncertainty around payouts 2026 [3].

The ongoing court disputes mean many motorists pursuing a car finance claim remain uncertain about when compensation or PCP refund payments may begin, as regulators continue efforts to manage one of the UK’s largest financial redress programmes in recent years.

_________

References:

1. The Information Commissioner’s Office said it has received around 6 million complaints since January, with roughly 100,000 consumers contacting the regulator each day - https://www.decisionmarketing.co.uk/top-story/car-finance-marketing-sparks-100000-complaints-a-day
2. The FCA, ICO, Advertising Standards Authority and Solicitors Regulation Authority have formed a joint effort to monitor the growing claims market - https://www.fca.org.uk/news/press-releases/regulators-join-forces-tackle-poor-claims-management-practices
3. legal challenges against the FCA car finance scheme continue to create uncertainty around payouts 2026 - https://www.autocar.co.uk/car-news/consumer/car-finance-scandal-payments-face-big-delay-due-legal-challenges