Whilst much of the focus regarding commission claims has naturally been on the Supreme Court’s ruling in the Johnson case as well as the Financial Conduct Authority (“FCA”) consultation on a redress scheme, one aspect that may have flown under the radar is the concern of regulators regarding the proliferation of claims management companies and the tactics being used by them to advertise their services. In July 2025, the FCA and the Solicitors Regulation Authority (SRA) issued a joint statement to claims management companies (CMCs) setting out their concerns, including the high fees being charged when compared to the free redress scheme. It was made clear that in the eyes of the regulators CMCs are required to act in the best interest of their clients, including not misleading customers as to the amounts they are likely to recover and to inform customers of the free redress scheme. The FCA has been clear regarding their intention to monitor the situation and to take enforcement action where appropriate. In September 2025 the FCA opened an enforcement investigation into The Claims Protection Agency Limited (TCPA) following concerns about its advertising and sales tactics in relation to potential motor finance claims, including concerns that customers were told the amount of redress they might obtain, whether or not they were told they could make a claim for free, and whether or not they were pressed to sign up. According to the information provided by the FCA, TCPA advertises for motor finance claims and refers potential claimants to law firms for representation services. TCPA has used, and may continue to use, a number of trading names, including: My Claim Group, Martin’s Tips, Karen’s Claims, Express PCP, and The PCP Guys. Within a week of starting the investigation TCPA applied for a judicial review of the decision to investigate them. The initial application was dismissed on the 23rd of October 2025, with permission to appeal the decision being denied by the Court of Appeal on the 19th of December 2025. In Conclusion Given that the FCA will not normally make public the fact that it may be investigating an entity, the recent announcement of an enforcement investigation is significant, but it is just the beginning of the process. The FCA has not reached any conclusions on whether TCPA breached any regulatory requirements. However, this is an important development and a warning to the industry. In addition to this, and potentially other enforcement actions, the FCA reports that its actions so far have also led to the removal or amendment of more than 740 misleading advertisements by FCA regulated CMCs since January 2024. We will continue to monitor and report on the subject, and remember that as a MILS member you have access to your lawyers, so please contact us at any stage for advice and assistance as appropriate. Motor Industry Legal Services Motor Industry Legal Services provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only regulated law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.