Educational, not advice. This article explains how claims management companies work in the context of motor finance complaints, what the FCA has said about the sector, and what your options are. It is general information only. Savvy Investor Guide is not authorised or regulated by the Financial Conduct Authority. Nothing here is personal financial advice. Your individual circumstances will determine what steps, if any, are right for you.
What this article covers: The FCA’s 7 May 2026 announcement on claims management companies working on motor finance complaints, including the separate investigation into Claims Protection Agency Ltd. How you can complain to your lender and the Financial Ombudsman Service without paying a claims management firm. When a CMC might actually be worth considering, and how to protect yourself if you have already signed up to one.
What it does not cover: The detail of the FCA’s motor finance redress scheme itself (PS26/3) or the legal challenges delaying it. For that, see our related article: Car Finance Compensation 2026: What the Legal Challenges Mean for Consumers and When You Might Get Paid.
If you took out a car finance agreement between 2007 and 2024, there is a reasonable chance you have been contacted by a claims management company (CMC) promising to recover compensation on your behalf. Some of those contacts will have been texts. Some will have been cold calls. A few will have been dressed up to look like official FCA notifications. On 7 May 2026, the Financial Conduct Authority announced it is reviewing the entire CMC sector operating in the motor finance space, and it has separately opened a formal investigation into one of the biggest players. Here is what you need to know.
In short
- On 7 May 2026, the FCA announced an industry-wide review of CMCs and law firms handling motor finance complaints. Specific concerns include misleading advertising, aggressive marketing, up to 21 different CMCs chasing the same individual’s claim, and exit fees that trap consumers.
- A separate FCA investigation into Claims Protection Agency Ltd (trading as My Claim Group, Martin’s Tips, and Express PCP) was opened on 2 January 2026.
- You do not need a CMC to make a motor finance complaint. The process for complaining directly to your lender costs nothing. Escalating to the Financial Ombudsman Service (FOS) also costs nothing.
- CMC fees on motor finance claims typically run from 25% to 36% of any compensation you receive. On the FCA’s estimated average redress of around £830, that is between £207 and £299 you would pay for a process you can do yourself for free.
- Fee caps of 15% to 30% (depending on claim size) are under active review by the FCA.
- If you have already signed with a CMC, you have rights, including the right to cancel within 14 days and the right to complain about the CMC itself.
What the FCA announced on 7 May 2026
The FCA’s announcement came from its Consumer Finance directorate and covered two distinct but related things.
The first was a sector-wide review of claims management companies and law firms working on motor finance cases. The FCA said it had been monitoring the sector closely and had identified “significant concerns” about how some firms are operating. The review is not a full enforcement investigation (though it may produce one), but it signals the regulator’s intent to act if the sector does not clean up its practices. The FCA said it would update on next steps by the end of 2026.
The second was the confirmation that a formal investigation into Claims Protection Agency Ltd, trading as My Claim Group, Martin’s Tips, and Express PCP, was opened on 2 January 2026. The FCA has not published the specifics of what triggered the investigation, which is standard practice at this stage. But the timing, coming shortly after the CMC sector began ramping up motor finance marketing following the FCA’s January 2024 pause on complaint handling, is notable.
The FCA also used the announcement to remind consumers that they can complain directly to their lender and to FOS, free of charge, and do not need a CMC at any stage.
Why the FCA is concerned
The concerns the FCA set out fall into four broad categories.
Misleading and aggressive marketing
Some CMCs have been running advertising that implies the motor finance compensation process is more complicated or urgent than it is. Tactics the FCA flagged include materials that look like they come from the FCA or the government, claims that deadlines are imminent when no such deadline exists, and language that implies you will lose out unless you sign up immediately. None of that is accurate. There is no signing-up deadline for individual complaints to lenders or for FOS escalation.
The 21-CMCs problem
The FCA documented one case in which 21 different CMCs had each submitted a claim on behalf of the same individual’s motor finance agreement, apparently without the person always being aware of how many firms had been engaged. In practice, this means one consumer’s complaint could end up generating 21 different fee claims against any compensation awarded, with multiple firms arguing they are owed a cut of the same pot. The FCA described this as “clearly not in consumers’ interests.”
The mechanism that allows this is the way some CMCs acquire leads. A consumer fills in one form, that lead gets sold or passed to multiple CMC networks, and each network then signs the consumer up through its own terms. The consumer often does not realise they have authorised multiple firms to act on their behalf.
Exit fees and difficult cancellation
The FCA raised concerns about exit fees charged when consumers try to leave a CMC arrangement before a claim is resolved. Some contracts include provisions allowing the CMC to charge a fee even if the consumer cancels. This creates a situation where a consumer who realises they do not want or need the CMC’s services is penalised for leaving, or feels unable to leave at all. The FCA said it is examining whether these terms comply with consumer contract regulations and CMC conduct rules.
Fee caps under review
CMC fees on motor finance claims are currently capped under FCA rules at a sliding scale: 30% of the first £1,499 of compensation, 28% of the next £1,500, and lower rates on higher amounts. The FCA is reviewing whether these caps are set at the right levels, given that the underlying complaint process is free for consumers. A lower cap, or a more stringent cap on fees overall, is one outcome the review may produce.
How car finance complaints work without a CMC
The complaint process the FCA set up for motor finance is designed to be used by ordinary consumers without professional help. Here is how it works in practice.
Step 1: Complain directly to your lender
Write to the lender (email is fine; keep a copy) and state that you are complaining about the commission arrangement on your motor finance agreement. Include your agreement reference number and the approximate start date. Say you believe the broker’s commission was not disclosed clearly, and that you want the lender to investigate whether you paid a higher interest rate as a result.
The lender has eight weeks to respond. They must either uphold your complaint, partially uphold it, or explain why they are rejecting it. If they do not respond within eight weeks, you can escalate to FOS regardless.
If you no longer have your paperwork, the lender is required to provide a copy on request, usually free. You can also submit a Subject Access Request under data protection law to get the full file.
Step 2: Escalate to the Financial Ombudsman Service if needed
If the lender rejects your complaint, or if eight weeks pass without a response, you can refer your case to FOS. FOS is the independent body set up by Parliament specifically to resolve disputes between consumers and financial firms. It costs consumers nothing. FOS will look at the evidence, consider whether the commission arrangement was properly disclosed, and decide whether you are owed compensation.
FOS has been handling a high volume of motor finance referrals since 2024 and cases can take some months to resolve. That is a reason to get your complaint in early, not a reason to pay a CMC to do it for you.
Full details of the FOS process are at financial-ombudsman.org.uk.
The free route in numbers
The FCA estimates average motor finance redress at around £830 per eligible agreement. At a CMC fee of 30%, you would pay approximately £249 of that as a fee. Via the direct complaint route and FOS, the same process costs you nothing. The letter or email to your lender takes perhaps 30 minutes to draft. The FOS form takes a similar amount of time. Free template letters are available from MoneyHelper (moneyhelper.org.uk) and Citizens Advice (citizensadvice.org.uk).
When a CMC might actually make sense
The honest answer is: rarely, for motor finance complaints. But there are some genuine edge cases where paying for help might be worth considering.
Multiple agreements across multiple lenders
If you have several historic agreements with different lenders, managing multiple simultaneous complaints could become time-consuming. A reputable firm that charges a fixed fee per claim (rather than a percentage) might save you effort. That said, a simple spreadsheet tracking each complaint and a couple of hours of your time is usually sufficient.
Complex cases involving administration or business failure
If your lender has gone into administration or been acquired, the complaint route can become less straightforward. In genuinely complicated scenarios, a regulated solicitor (not a CMC) charging a fixed fee may add real value. The distinction matters: solicitors are regulated by the Solicitors Regulation Authority and are subject to stricter professional conduct obligations than CMCs.
Significant sums where legal representation is proportionate
If your claim involves a very large agreement where the potential redress runs into thousands of pounds rather than hundreds, taking legal advice may be proportionate. In that case, a fixed-fee solicitor rather than a percentage-fee CMC is usually the better choice. The FOS route remains available regardless.
Outside these specific cases, a CMC is not adding value that you cannot access for free. The complaint process was designed to be consumer-accessible. The FCA and FOS exist precisely so that ordinary people can exercise their rights without professional intermediaries.
How to protect yourself if you have already signed with a CMC
If you have already entered into an agreement with a CMC, you have a number of rights worth knowing about.
The 14-day cooling-off period
You have a statutory right to cancel a CMC contract within 14 days of signing, without giving a reason and without owing a cancellation fee (unless the CMC has already done work and you specifically asked them to start before the 14 days were up, in which case a reasonable charge for work done can apply). If you signed recently and have changed your mind, write to the CMC stating you are exercising your right to cancel under the Consumer Contracts Regulations 2013.
Check your contract terms before cancelling after 14 days
After the 14-day window, the exit terms in your specific contract apply. Read those terms carefully before contacting the CMC. Some contracts allow a free exit if no work has been done; others charge a fee. The FCA’s ongoing review is partly aimed at contracts where these terms are unfair, but until the review concludes the contract you signed is binding unless a term is found to be unlawful.
If you believe the exit terms are unfair, you can raise a complaint with the CMC directly first (they are required to have a complaints process). If that does not resolve it, you can escalate to the Legal Ombudsman, which handles complaints about CMCs and solicitors.
You can complain about the CMC itself
CMCs are authorised and regulated by the FCA. If a CMC has misled you, charged you unfairly, or behaved in a way that breaches FCA conduct rules, you can report it to the FCA directly at fca.org.uk/consumers/report-information-about-a-firm. The FCA’s review announced on 7 May makes it more likely that genuine complaints about CMC conduct will get attention.
Check whether you have been signed up by multiple CMCs without realising
Given the FCA’s finding that up to 21 CMCs had submitted claims for a single individual, it is worth checking whether you have authorised more than one firm to act on your behalf. Review any emails or texts you received that asked you to confirm or click to approve, and check for multiple direct debit or agreement confirmations. If you have unintentionally signed up with several firms, write to each to cancel (using the 14-day right if applicable, or checking the terms otherwise).
FAQ
Do I need to use a CMC to get motor finance compensation?
No. You can complain directly to your lender at no cost, and escalate to the Financial Ombudsman Service if the lender rejects your complaint or does not respond within eight weeks. Both routes are free. CMCs are authorised to handle complaints on your behalf, but their involvement is entirely optional.
What did the FCA announce on 7 May 2026?
The FCA announced two things. First, a sector-wide review of claims management companies and law firms operating in the motor finance space, citing concerns about misleading advertising, aggressive marketing, multiple CMCs pursuing the same individual’s claim (up to 21 in one documented case), and exit fees that make it hard for consumers to leave a CMC arrangement. Second, the FCA confirmed it opened a formal investigation into Claims Protection Agency Ltd (trading as My Claim Group, Martin’s Tips, and Express PCP) on 2 January 2026.
What is Claims Protection Agency Ltd, and should I be worried if I used them?
Claims Protection Agency Ltd is a claims management company that trades under several names including My Claim Group, Martin’s Tips, and Express PCP. The FCA opened a formal investigation into the firm on 2 January 2026. The FCA has not published the specifics of what the investigation covers. If you have an active claim with any of those brands, check the terms of your agreement, note any fees or obligations, and consider whether you want to exercise your cancellation rights or wait for the investigation to develop. You can also report any concerns about the firm directly to the FCA.
If a CMC submits a claim for me, do I still owe them a fee if the FCA scheme pays out?
That depends on the terms of the contract you signed with the CMC. In general, if a CMC has a valid agreement and their work contributed to a successful outcome, they can claim the agreed fee from any compensation you receive. This is one reason to check carefully whether you have signed with a CMC before any compensation arrives, and to understand what your obligations are. If you have signed with multiple CMCs without realising it, get advice from Citizens Advice or the Legal Ombudsman about your position.
How much do CMCs charge for motor finance claims?
CMC fees on motor finance claims are capped under FCA rules at a sliding scale: 30% of the first £1,499 of any compensation, 28% of the amount between £1,500 and £9,999, and lower rates above that. For an average claim of around £830, a CMC fee at the maximum rate would be approximately £249. The FCA is reviewing whether these caps should be reduced. The FOS route and the direct lender complaint route have no fees for consumers.
Can I cancel a CMC agreement I have already signed?
Within 14 days of signing, you have a statutory right to cancel without owing a fee (unless you asked the CMC to start work before the 14-day period ended, in which case reasonable charges for work done may apply). After 14 days, the cancellation terms in your specific contract apply. Check those terms before contacting the CMC. If you believe the terms are unfair, you can raise a complaint with the CMC and, if unresolved, escalate to the Legal Ombudsman.
Is there a deadline for making a motor finance complaint?
There is no FCA-imposed deadline that applies to individual complaints to lenders or FOS. The general limitation period under the Limitation Act 1980 is six years from the date the cause of action arose, though the analysis for unfair-relationship claims under the Consumer Credit Act 1974 can be more nuanced. Any CMC that tells you there is an urgent deadline requiring you to sign up immediately is using a sales tactic, not a legal fact. Take your time and consider whether you need a CMC at all before signing anything.
The Savvy Investor’s take
The motor finance redress story is one of the clearest examples of a financial system that has been set up correctly for consumers, being exploited by intermediaries whose involvement is entirely unnecessary. The FCA complaints process, the Financial Ombudsman Service, and the free template letters from MoneyHelper are all there specifically so that ordinary people do not need to pay a percentage of their compensation to someone else just to access rights they already have.
The FCA’s review is welcome. The 21-CMCs-for-one-claim finding, in particular, illustrates how lead generation in the CMC sector has become detached from any genuine consumer benefit. You fill in a form on a comparison-style website, your details get sold down a chain, and you end up with a dozen firms claiming an entitlement to a share of compensation that should come to you in full.
The sensible approach is to handle the complaint yourself. Write to the lender. Wait eight weeks. If needed, go to FOS. None of that requires paying 30% of your compensation to a third party. If you have already signed with a CMC and you are within 14 days, the cancellation right is worth exercising if you are confident you can manage the process. If you are outside the 14-day window, read your contract before making any decisions.
The FCA investigation into Claims Protection Agency Ltd is at an early stage, and the outcome is not known. But the fact that the FCA is looking at the sector at all is a signal that it takes the conduct concerns seriously. Watch for further updates before the end of 2026.
Information, not advice. This article is for general information purposes only. Savvy Investor Guide is not authorised or regulated by the Financial Conduct Authority. We are not a claims management company, law firm, or financial adviser. Nothing in this article constitutes personal financial or legal advice. If you are unsure how to proceed with a motor finance complaint or CMC contract, seek independent legal or financial guidance.
Key official sources
- FCA investigation into Claims Protection Agency Ltd: fca.org.uk press release
- FCA motor finance redress scheme (PS26/3): fca.org.uk/publications/policy-statements/ps26-3
- Financial Ombudsman Service: financial-ombudsman.org.uk
- MoneyHelper (free guidance and template letters): moneyhelper.org.uk
- MoneySavingExpert CMC review coverage: moneysavingexpert.com
- Insurance Edge 7 May 2026 report: insurance-edge.net
This article reflects information available as of 14 May 2026. The FCA’s sector review and the Claims Protection Agency investigation are ongoing; outcomes had not been published at the time of writing.
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