News

FCA review will look at the claims market

14 May 2026

We are working closely with the Financial Conduct Authority (FCA) and other regulatory partners on a review of the claims management market, following concerns that consumers are being failed by the practices of some law firms and claims management companies (CMCs).

The FCA has said that it will examine the root causes of poor practice across the market, including aggressive marketing, misleading advertising and unfair exit fees.

Other concerns include consumers being signed up without their consent, often without clear, upfront explanations of the implications of signing up, or via ticking a box, for example through social media adverts, or by multiple representatives. This can cause confusion and delay compensation.

While the approach taken to motor finance claims by some law firms and CMCs has been a clear and current focus, the review will also cover concerns about the handling of other types of claims, such as housing disrepair.

Aileen Armstrong, Executive Director - Strategy, Innovation and External Affairs, said: 'When they work well, claims management services can benefit consumers. However, we continue to see poor practices and behaviours that do not adequately protect consumers' interests.

'We are working closely with the FCA and other partners on this review. This is a cross‑sector issue that requires coordinated regulatory action.'

On 30 March 2026, we announced a joint motor finance taskforce with the FCA, the Information Commissioner's Office and the Advertising Standards Authority. The taskforce will tackle the poor handling of motor finance claims by some law firms and CMCs.

We have made clear our expectations of law firms on motor finance commission claims, and there is more on work the high-volume consumer claims market in our hot topic.