FCA warns against multiple motor finance claim reps
Financial regulators warn that some consumers have up to 4 different representatives for the same motor finance claim. Multiple agreements could lead to excessive termination fees.
The FCA and Solicitors Regulation Authority have issued a joint warning to claims management companies and law firms handling motor finance claims, urging them to prevent clients from having multiple representatives for the same claim.
The regulators have observed cases where clients have up to 4 different representatives working on identical motor finance claims. This situation creates significant financial risks for consumers who may face multiple termination fees if they attempt to cancel duplicate agreements.
The warning specifically highlights concerns about excessive termination fees that could be charged to clients trying to exit these overlapping representation arrangements. The FCA and SRA are calling on professional representatives to ensure proper checks are in place to avoid such multiple representation scenarios.
The joint statement reflects growing regulatory scrutiny of practices within the motor finance claims sector, as authorities work to protect consumers from potentially exploitative arrangements.
