Regulators are to join forces to crack down on misleading advertising and other poor practice motorists have faced when making car finance claims, the Financial Conduct Authority (FCA) has announced.
Watchdogs for solicitors, advertising and data protection will unite with the FCA to step up their efforts, sharing information with one another to help drivers who are mis-sold car loans and then have their claims held poorly by some claims management companies (CMCs) and law firms.
The FCA said it will work with the Solicitors Regulation Authority (SRA), the Information Commissioner’s Office (ICO) and the Advertising Standards Authority (ASA) to take “targeted action”.
The finance watchdog said the taskforce, launched on Monday, will take “swift action” to tackle issues with unsolicited and misleading advertising, meritless claims, multiple representation and unfair exit fees.
It comes as millions of motorists who were mis-sold a car loan will find out how they will be compensated as the FCA shares its plans for an industry-wide scheme.
Final decisions on the long-awaited programme will be published by the FCA on Monday afternoon.
The regulator set out draft plans last year but it is likely to make several changes after receiving more than 1,000 responses to its consultation.
Alison Walters, director of consumer finance and FCA taskforce lead, said: “Our scheme will be free and people don’t need to use a CMC or law firm.
“Should they decide to do so, it’s important that they can trust CMCs and law firms to act in their best interests. This taskforce will ensure we deal with problems quickly and decisively.”
The regulator advises customers not to sign up to multiple law firms to represent them in their claims, and to be cautious of potential scammers who may try to contact by cold calling.