Joint taskforce continues crack down on misleading car finance claims adverts

The FCA, Advertising Standards Authority, Solicitors Regulation Authority and Information Commissioner's Office are tackling the poor handling of motor finance claims by some claims companies and law firms. As part of the joint taskforce's continued crackdown, in June the FCA had 170 misleading car finance claims adverts removed or amended by claims management companies (CMCs), bringing the total up to 1,200 since January 2024. Some of the misleading adverts seen by the FCA:Were disguised as a consumer posting on social media recommending a website to look up agreements. However, the advert failed to make clear it was a financial promotion for a CMC that was recommending its own website.Were using the FCA motor finance redress scheme in a misleading way to promote the firm’s own services, which could suggest an affiliation with the FCA.Failed to clearly highlight free claim options and the FCA's redress scheme.Promoted claims management services when not authorised to do so.The FCA also agreed to voluntary requirements (VREQs) with 2 firms, securing agreement that they would stop or change their marketing activities. This brings the total number of VREQs to 12 in relation to a rang