The FCA is launching a £1 million campaign to inform motor finance customers that they do not need to use a claims management company (CMC) or law firm to access a proposed industry-wide compensation scheme.

The campaign will run through radio and online advertising, and will also feature influencers such as Cameron Smith (@cazza_time) to help spread the message to consumers.

Research commissioned by the FCA shows:

• 79% of motor finance customers are aware they may be entitled to compensation.
• 61% are aware that a possible compensation scheme could be introduced.
• 41% of those aware of potential compensation did not know they would not need to use a CMC or law firm if a scheme is launched.

Using a CMC or law firm could reduce any payout by around 30%.

Among customers who believe they may be owed compensation:

• 25% have already made a claim.
• A further 39% intend to make one.
• Of those who have already claimed, 46% used a CMC or law firm.

Over the next two months, several influencers will share updates on Instagram and TikTok, with online video and radio adverts scheduled to begin in October.

Sheree Howard, FCA Executive Director, said:

“We’ll set out plans for a free, easy-to-access motor finance compensation scheme. We’re concerned that many people don’t realise you don’t need a CMC or law firm to make a claim. If you use one, you could lose more than 30% of the money you’re owed.”

The FCA has also warned consumers about scammers pretending to be car finance lenders and offering false compensation. At present, no compensation scheme is in place. The FCA advises consumers to hang up immediately and not share personal information if they receive such calls.

A consultation on the proposed compensation scheme will begin in early October, with first payments expected in 2026 if the scheme goes ahead.

In addition, the FCA and the Solicitors Regulation Authority recently issued a joint statement warning CMCs and law firms about poor practices in handling motor finance commission claims. Issues identified include misleading marketing, inaccurate information, and concerns about how client details are passed between third parties.

Between January 2024 and August 2025, the FCA has required CMCs to amend or remove 396 motor finance commission promotions.