---
title: "FCA Launches Investigation into Claims Management Companies Over Car Finance Tactics"
canonical: "https://carfinancerefundletter.co.uk/blog/fca-investigation-claims-management-companies"
date: "2026-01-06T09:00:00.000Z"
---
# FCA Launches Investigation into Claims Management Companies Over Car Finance Tactics

_Published: January 6, 2026_ · _3 min read_

The regulator has publicly named a major CMC for alleged misleading advertising and high-pressure sales tactics. Here's what it means for consumers.

**Canonical:** [HTML article](https://carfinancerefundletter.co.uk/blog/fca-investigation-claims-management-companies)

---

In a significant move, the [Financial Conduct Authority (FCA) has announced an enforcement investigation](https://www.fca.org.uk/news/press-releases/fca-opens-investigation-claims-management-company) into The Claims Protection Agency Ltd (TCPA) and its associated brands, including My Claim Group, Express PCP, The PCP Guys, Martin's Tips, and Karen's Claims.

## Why This Matters
This is a rare public naming of a firm under investigation—a step the FCA typically reserves for cases it deems a serious risk to consumers. According to [Car Dealer Magazine](https://www.cardealermagazine.co.uk/publish/fca-launches-investigation-into-claims-management-company-over-car-finance-tactics/318721), the investigation focuses on whether TCPA's advertising and sales practices were misleading, particularly regarding:
- Whether customers were adequately informed about potential redress amounts.
- Whether they were told claims could be pursued **for free**.
- Whether undue **pressure** was applied during the sign-up process.

## The 25-30% Fee Trap
Claims management companies (CMCs) often charge fees of 25% to 30% (plus VAT) of any compensation you receive. On a £1,000 refund, that could mean losing over £300 simply for having a form filled out on your behalf—something you can do yourself in minutes. As [MoneySavingExpert](https://www.moneysavingexpert.com/reclaim/car-finance-claims/) consistently advises, you don't need to pay a third party to make a claim.

## What the FCA Says
The FCA has been consistently clear: **you do not need a CMC to make a car finance claim**. Their official guidance states that the upcoming redress scheme is designed for consumers to claim directly from their lender. Hence why you can use our [tool](https://carfinancerefundtool.com/letter) to generate your complaint letter. By publicising this investigation, the FCA is sending a strong message to the entire industry.

## What Should You Do?
1.  **If you've signed up with a CMC:** Check your contract. You may have a 14-day cooling-off period to cancel without penalty. Even outside this window, consider contacting them to understand their fees before your claim progresses.
2.  **If you haven't complained yet:** Use our [tool](https://carfinancerefundletter.co.uk/letter) to generate your complaint letter. Keep 100% of your refund.
3.  **Be wary of cold calls and social media ads:** If someone contacts you promising guaranteed payouts or pressuring you to sign up quickly, treat it as a red flag.

## The Bottom Line
The car finance refund process is designed to be consumer-friendly. Don't let opportunistic companies profit from the chaos. Stay informed, stay patient, and keep your money.