MSE News: Claims management companies to be investigated over 'misleading ads and unfair exit fees'

MSE_Abby

Claims management companies (CMCs) will be investigated by the financial regulator over "poor practices", including "misleading advertisements, aggressive marketing and unfair exit fees". The Financial Conduct Authority (FCA) will also look into whether claims firms should be subject to stronger compensation rules if they cause harm…

Read the full story:

https://www.moneysavingexpert.com/news/2026/05/claims-management-firms-review/

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born_again

Time the FCA took them to task.

MattMattMattUK

I am far from a fan of claims management companies, but their terms generally seem clear in the ads. The ones for car finance claims at the moment all seem fairly clear that they will take a substantial chunk of money that the person could claim themselves anyway. I seem them as an idiot tax, if people are stupid enough to use them then that is on them.

The only thing I think should be directly tackled is their random calling and messaging people, claiming they had submitted their number for contact. If they do that then they should have their FCA license revoked and they should be shut down.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81990934#Comment_81990934

Dont think the success fee is the major problem, though its one part of the review… certainly a good number have been offering "checkers" which very easily sign you up to a service which comes with a £150-£300 fee to discontinue. Yes if you read what you are clicking its all in the linked terms you say you agree to but 1) people dont read and 2) the nanny state is increasingly protecting people from themselves and saying you need to spell out the big things and cannot rely on someone clicking an "I Agree" button having not even opened the 20 page terms they are agreeing to.

RedbullRJ

It's about time Martin went to war on claims management companies. They are the leaches or the legal profession and offer no societal good.

 Car finance has been done to death; consumers made a choice to take it out and always knew how much they would pay ( just not how much each of the parties got). 

If they didn't shop around to see if a better deal was avaliable, how is that different to paying over the odds for an item in a shop without seeing if there is a better deal? and shops don't and would be expected to disclose their margins and commissions?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81998059#Comment_81998059

You know that "Martin" is the one thats been campaigning that people should be getting money back for the car finance? Same with PPI, Bank Charges and all the other campaigns that have made him £123m (Sunday Times Rich List)

Your 2 & 3 paragraphs are diametrically opposed to Martin's views and so not sure if you really should be promoting him?