The Financial Conduct Authority (FCA) has launched a £2 million national advertising campaign reminding motor finance customers that they do not need to pay a claims management company or law firm to make a compensation complaint. The regulator is urging borrowers to complain directly to their lender and use its free tools, a step that could help London drivers avoid unnecessary fees and take control of their case.
What the FCA is asking customers to do
The FCA said people with concerns about their car finance should complain to their lender themselves and use the regulator’s free resources to do it. Its guidance page sets out how to raise a complaint and includes a template complaint letter that customers can adapt and send directly. The regulator’s message is clear: there is no requirement to pay a third party to start a complaint or to understand your options.
The advice covers those who believe they may have been affected by how their motor finance agreement was arranged or how interest or charges were applied. The FCA’s consumer guidance on car finance complaints is the authoritative source for the steps to take and the next stages of the process.
£2m awareness push across TV, radio and social media
The FCA’s campaign runs from 27 July to 6 September 2026 and will appear across television, radio, print, billboards and social media. The aim is to drive borrowers to the free template letter on the FCA website and build confidence to complain without paying a claims firm.
To understand customer attitudes, the FCA commissioned a survey of 1,000 motor finance customers in June 2026. It found that 27% said they lacked confidence to complain without using a claims management company or law firm; 59% had made or were considering a claim; 23% were unsure of their options; and over 80% said the FCA’s template would make them more confident to complain directly. The campaign seeks to address those concerns by providing clear, accessible guidance.
Where the redress scheme stands
The FCA launched a car finance redress scheme in March 2026. Parts of the scheme have since been partially suspended due to legal challenges. The FCA’s guidance page notes the scheme covers motor finance agreements between 6 April 2007 and 1 November 2024. Until legal proceedings conclude, lenders do not have to calculate or pay compensation under the scheme.
Against that backdrop, the regulator is encouraging customers to use its free tools and submit complaints directly to lenders. The FCA’s consumer page remains the single source for how to complain, the template letter and the next steps for customers while the legal position is resolved.
Why this matters for London borrowers
Many Londoners rely on car finance for everyday travel and work. Paying a percentage of any eventual payout to a third party can reduce what customers ultimately receive. By using the FCA’s free template and approaching lenders directly, borrowers retain control and avoid fees charged by claims firms. The campaign is designed to simplify a process that can feel technical or intimidating, particularly where legal terminology is involved.
For readers evaluating financial tools and services more generally, this is also a reminder to assess costs and value before authorising a third party to act on your behalf. Our guide on navigating choices in the finance and technology space offers further context on decision-making and due diligence: how to choose a banking and financial software development company in the UK.
How to start your complaint today
- Check whether your agreement falls within the period the scheme covers: between 6 April 2007 and 1 November 2024.
- Visit the FCA’s page on car finance complaints and use the free template complaint letter.
- Send your complaint directly to your lender using the details they provide for customer complaints.
- Keep copies of all correspondence and note dates, account numbers and any responses you receive.
- Be cautious about paying fees to third parties offering to manage your complaint.
Next steps depend on the outcome of ongoing legal proceedings affecting parts of the redress scheme. The FCA said its guidance page will remain updated with the latest information on processes and timing. For now, the most practical action for customers is to lodge a direct complaint with their lender and use the FCA’s free resources to do so.
