FCA Launches Investigation Into Celebrity Promoted Claims Firm Amid Motor Finance Scandal

The Financial Conduct Authority has initiated an enforcement investigation into The Claims Protection Agency Limited, a Manchester-based claims management firm, over concerns regarding its marketing practices during the unfolding motor finance scandal. The regulator announced on Friday that it is scrutinising the company’s advertising methods and sales tactics, which have been employed to capitalise on what is anticipated to become an £11 billion compensation scheme affecting millions of motorists.

The company in question has operated under multiple trading names, including My Claim Group, Express PCP, The PCP Guys, Martin’s Tips, and Karen’s Claims. The firm previously featured celebrity endorsement to its claims management services.

The FCA has raised specific concerns about the information provided to potential clients. The regulator stated it is investigating whether customers received accurate information about potential redress amounts, whether they were informed of their right to pursue claims without charge, and whether high-pressure sales techniques were employed to secure client sign-ups. Since August of the previous year, the company has agreed to cease accepting new customers and suspend all promotional activities as part of its cooperation with the regulatory inquiry.

This investigation represents a significant escalation in the FCA’s efforts to regulate the claims management industry, which has experienced substantial activity following the regulator’s announcement of a car finance review two years prior. The sector has witnessed a proliferation of firms seeking to profit from the scandal by pursuing compensation on behalf of consumers, typically charging fees calculated as a percentage of any awarded redress.

The regulatory review has culminated in what is likely to constitute the largest financial services compensation programme since the payment protection insurance debacle. The FCA has determined that 14.2 million car loan agreements may have been structured unfairly, prompting the development of an industry-wide redress scheme. This mechanism, which will be accessible to consumers without charge, is expected to result in an £11 billion liability for banks and automotive finance companies.

The FCA and the Solicitors Regulation Authority have issued warnings throughout the current year concerning poor practices within the claims industry. Both regulatory bodies have emphasised that consumers possess the right to pursue claims independently without engaging intermediary firms or incurring associated fees.

Corporate records filed at Companies House indicate that The Claims Protection Agency is controlled by directors Jonathon Howarth and John Johnstone. Luxembourg-based litigation funder Katch Fund Solutions holds two charges over the business, suggesting financial arrangements to support its operations.

Archived website content for My Claim Group reveals that as recently as last summer, the firm was advertising potential average motor finance payouts of £4,000 per claim. This figure significantly exceeds the FCA’s October estimate of £700 per finance agreement. The company’s current website acknowledges that the £4,000 projection is not accurate, reflecting a substantial discrepancy between marketing claims and regulatory assessments of likely compensation levels.

In response to the investigation, The Claims Protection Agency issued a statement asserting full cooperation with the FCA inquiry. The company expressed confidence that the investigation would vindicate its position and provided assurances to consumers that it remains operationally capable of managing existing compensation claims. The firm’s ability to continue processing claims for existing clients appears unaffected by the regulatory investigation, though its prohibition from acquiring new customers remains in force.

The motor finance scandal centres on allegations that lenders engaged in unfair practices when arranging car loans, potentially including undisclosed commission arrangements that may have increased costs for consumers. The scale of affected agreements and the substantial compensation estimates have drawn comparisons to the payment protection insurance mis-selling scandal, which ultimately cost the financial services industry over £38 billion in redress payments.