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The Guardian - UK

Business

Rupert Jones

UK regulators step up crackdown on firms chasing cut of car finance payouts

FCA United Kingdom CMCs SRA

A car with a pink sticker in the windscreen reading 'flexible finance available' — The FCA is stressing people do not need to use a claims management company or law firm to access compensation. Photograph: Neil Hall/EPA

UK regulators have shut down some claims companies and ordered others to stop taking on clients as they step up a crackdown on firms making misleading statements about car finance compensation.

Four regulators have joined forces to tackle a wave of bad practices among claims management companies (CMCs) and consumer law firms that are attempting to grab a slice of the billions of pounds in compensation set to be paid to victims of the car finance commission scandal.

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