Motor finance – joint regulator taskforce targets CMCs and law firms

Four regulators join forces as the FCA scheme lands, signalling tighter control on claims activity and market conduct

On 30 March 2026, the same day the FCA announced details of its final motor finance redress scheme, four regulators confirmed the launch of a joint taskforce to tackle poor practice by claims management companies (CMCs) and law firms handling motor finance commission complaints. The taskforce brings together the FCA, the Solicitors Regulation Authority (SRA), the Information Commissioner's Office (ICO) and the Advertising Standards Authority (ASA) and represents the most co-ordinated regulatory response to CMC and law firm conduct seen in this market to date.   

The taskforce's stated targets are specific: unsolicited and misleading advertising, meritless claims, multiple representation, and unfair exit fees. Each regulator brings distinct enforcement powers to bear, the FCA over authorised CMCs, the SRA over law firms, the ICO over nuisance communications and the ASA over financial promotions. The regulators have committed to sharing intelligence and taking co-ordinated, targeted action using the full extent of their powers. This is not a softly-worded statement of intent: the FCA has already removed or amended 800 misleading adverts, secured fee reductions from 3 CMCs protecting over 500,000 consumers, and has at least one formal investigation under way.  

For lenders, the timing matters. The taskforce announcement lands alongside the final redress scheme and the FCA's consumer research underlines the scale of the practical problem: 41% of those aware they may be owed compensation did not know they would not need a CMC or law firm if a scheme were introduced. With the compensation process now formalised and free to consumers, the commercial justification for CMC and law firm involvement will face greater scrutiny, and the regulators are signalling that conduct in this space will be policed actively.   

Key takeaway:  

The creation of a four-regulator taskforce is a significant escalation. For lenders managing motor finance complaints, it offers some prospect of relief from the multiple representation and meritless claims burden highlighted in the FCA's February 2026 Dear CEO letter, but firms should not wait for the taskforce to resolve those issues on their behalf. Documented processes for identifying multiple representation, handling unsolicited CMC contact and progressing complaints at pace remain a regulatory expectation. As the redress scheme goes live and the complaints pause lifts, firms that have not prepared operationally will face the consequences regardless of how effectively the taskforce performs. 

You can download the briefing note here:

If you would like more information on this, please get in touch with the Auxillias team via the details on this page.

Plus:

Register for our Helping Hands session on 16 April 2026 

Our next Helping Hands session will focus on the final FCA redress rules, which are expected to land before Easter. We’ll look at what the confirmed position means in practice for lenders and brokers - from scope and customer cohorts to governance, data, operational impact and board oversight. Sign up here.

Register your interest for the Auxillias Board Blueprint

Plus, we are also finalising our Board Blueprint: A practical guide to motor finance redress governance, which we will be updating to reflect the latest developments before releasing it shortly. Register your interest here.