FCA Investigates Claims Firm Over Motor Finance Advertising

The UK financial watchdog, the Financial Conduct Authority (FCA), announced on Friday, January 2, that it has opened an enforcement investigation into The Claims Protection Agency Limited (TCPA). 

According to the regulator, the investigation comes due to concerns regarding the firm’s advertising and sales tactics in relation to potential motor finance claims.

“The FCA is investigating what customers were told about the amount of redress they might obtain, whether they were told they could make a claim for free, and whether they were pressurised to sign up. Announcing the investigation allows TCPA customers to consider their options,” the regulator stated.

It did stress that it has not reached any conclusions on whether TCPA breached any regulatory requirements yet. 

The FCA Wanted To Make The Investigatigation Publicly Known

Instead, the FCA explained that it has notified TCPA of its intention to announce the enforcement investigation on September 1, 2025. The company applied for judicial review of the FCA’s decision to announce the investigation, but the High Court dismissed the application. The company was also refused permission to appeal by the Court of Appeal.

The TCPA advertises for motor finance claims and refers potential claimants to law firms for representation services, as noted by the FCA. The company applied to the FCA for a Voluntary Requirements Application in August last year, which obligates it to stop onboarding new customers and publishing new financial promotions, while all existing promotions must be withdrawn.

The regulator also said that its enforcement guide sets out its policy on publicising investigations, saying that it will normally not make public the fact that it is or is not investigating a certain entity, but it may do so in exceptional circumstances. With that said, the FCA considers that the exceptional circumstances test has been met in this case, as it wishes to protect consumers and investors, as well as maintain confidence in the UK financial system and the market.

Previously, the regulator issued a joint statement with the Solicitors Regulation Authority in July 2025, and it sent a letter to claims management companies, setting out some concerns that led to the increase in proactive monitoring. This, in turn, has led to the removal or amendment of over 740 misleading adverts by the FCA.

Finally, in October 2025, the regulator published a consultation paper on a proposed motor finance consumer redress scheme for those customers who were treated unfairly. For now, the investigation continues, and the regulator will act accordingly based on its findings.