FCA launches reviews into claims management practices
By Benjamin Chiou
Date: Wednesday 06 May 2026
(Sharecast News) - The UK's Financial Conduct Authority has launched a review of the claims management sector amid concerns consumers are being "let down" by firms in ways that could be a result of potential misconduct.
The regulator said the review will examine the root causes of "poor practices", including aggressive marketing, misleading advertising and the use of unfair exit fees.
It will also assess cases where consumers are signed up without clear consent or are represented by multiple parties, potentially delaying compensation payments.
The FCA noted that while scrutiny has intensified around motor finance claims, similar issues may be present in other areas such as housing disrepair. Previous supervisory work had already identified shortcomings, but regulators continue to observe behaviour falling short of expectations.
The review forms part of broader regulatory efforts, including coordination with other bodies to tackle poor practices across the market.
In a statement, the FCA said it was acting in response to evidence of consumer harm and ongoing concerns about standards across claims management companies and associated law firms.
"CMCs and law firms can help consumers secure compensation they are owed. But too often consumers are being let down, eroding trust in firms that should be supporting them and damaging the economy," said Alison Walters, the FCA's director of consumer finance.
"This review will give us a clear picture of how the market is working and galvanise the further actions that are needed."
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