Regulations

Story: FCA and SRA Issue Joint Warning on Motor Finance Claims Practices

By Sydney TheCMO

1 / 15

Regulators crack down hard. The Financial Conduct Authority and Solicitors Regulation Authority dropped a joint warning today targeting claims management companies and law firms…

2 / 15

Both watchdogs want firms to run proper checks before taking on clients, making sure nobody else is already working the same claim.

3 / 15

Sheree Howard from the FCA didn't mince words: "Firms must confirm no other representative is already instructed before proceeding. Any termination fees must be reasonable.

4 / 15

Both agencies plan to keep hammering CMC and law firm practices, going after any sloppy procedures they find.

5 / 15

Problems with onboarding, consumer info, and sketchy advertising have created this dual representation nightmare.

6 / 15

Starting February 5, they're launching an awareness campaign warning consumers about fraudulent car finance lenders.

7 / 15

Consumers don't actually need to hire a CMC or law firm to claim compensation - doing so just means paying hefty fees for something they can handle themselves.

8 / 15

The FCA keeps tweaking its oversight approach. Back in October, they confirmed they're examining exit fees closely.

9 / 15

The SRA updated its claims management guidance to cover termination fees and multiple representation issues.

10 / 15

Both authorities keep watching the regulatory landscape closely, staying committed to consumer protection in motor finance claims as things keep developing.

11 / 15

The SRA reported on January 31 that investigations into those 71 law firms managing high-volume consumer claims continue.

12 / 15

As of October last year, the FCA has been actively refining regulations around exit fees, leveraging powers under the Digital Markets, Competition and Consumers Act 2024.

13 / 15

The FCA-SRA collaboration shows a united front against malpractice in the claims management industry.

14 / 15

On February 4, the FCA stressed consumer awareness importance in its latest communication. The authority said consumers should know all their options before deciding to engage…

15 / 15

The SRA's Warning Notice from January 2026 demands law firms clearly communicate all potential costs upfront.

The Currency Analytics

Want the full story?