FCA cracks down on misleading car finance adverts – what you should look out for

The UK’s financial watchdog has stepped in to ban misleading adverts about car finance compensation, in a move designed to protect people from being misled.

Here’s what’s happened and what you should watch out for.

Why were the adverts banned?

The Financial Conduct Authority (FCA) took action after adverts circulated that could give people the wrong impression about car finance payouts.

Some of these ads:

• used edited or fake clips of Martin Lewis to appear credible
• displayed the FCA’s logo without permission
• claimed people would receive £1,846 on average in compensation, without explaining how that figure was calculated

Which company was involved?

The adverts were linked to Conclusive Financial Ltd, a claims management company also operating as PCP Refunds.

The FCA found further issues with how the company promoted its services:

• it advertised a ‘no win, no fee’ offer without clearly explaining the costs
• it didn’t make it clear that you can claim for free yourself
• important details, like potential fees or exit charges, weren’t properly explained

As a result, the FCA ordered the company to remove its adverts and update or take down its website until it complies with the rules. The adverts in question have now been removed.

What this means for you

If you’ve seen adverts about car finance compensation, it’s worth being cautious.

Here’s what you need to know about the car finance compensation scheme:

• you don’t need to pay a claims company or solicitor to make a complaint

• compensation will be paid by lenders, usually banks or finance providers, not the dealerships.

• be wary of ads that promise fixed or ‘average’ payouts without evidence

What should you do if you’ve been affected?

If you think you were misled by one of these adverts, the FCA advises:

• complain directly to the company involved
• if you’re not happy with their response, contact the Financial Ombudsman Service

If you signed up with a law firm after seeing one of these ads:

• raise a complaint with the firm first
• Then go to the Legal Ombudsman if needed

The FCA’s action is about protecting you from misleading claims and unnecessary fees.

If you’re thinking about claiming car finance compensation, remember, you can do it yourself, for free. The FCA provides a template letter. There is also a free car finance reclaim tool on Money Saving Expert.