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The FCA is clear that you do not need a claims management company (CMC) or a law firm to complain about car finance or to receive compensation under its scheme. You can complain to your lender directly, for free. Some people still prefer help with the paperwork, the follow-up and the decisions, and that is a legitimate choice.
If you are considering it, the choice matters. The FCA and the Solicitors Regulation Authority (SRA) have issued a joint warning about poor practice in this market, including people signing up with more than one firm and being charged excessive fees to leave. PCP Missold is itself a claims management company, so everything in this guide applies to us as well. It sets out what the FCA says to check before you sign anything.
IN THIS ARTICLE
- You can complain for free without one
- 1. Check the firm is authorised
- 2. Understand the fees before you sign
- 3. Make sure you only have one representative
- 4. Look at how the firm contacted you
- 5. Ask about realistic outcomes
- 6. Know how to complain if things go wrong
- Frequently asked questions
You can complain for free without one
We put this first because it should shape your decision. The FCA's consumer page says you can complain now for free without a CMC, and that you do not need one to find out whether you are eligible. Its statement of 13 October 2026 repeats that you do not need a law firm or CMC, which it says may charge up to 36% of any compensation.
If you are unsure whether you want help, the free guidance service MoneyHelper can talk it through, and our guide to finding your car finance agreement details shows how to take the first steps yourself.
1. Check the firm is authorised
According to the FCA, CMCs must be authorised by it if they handle claims about financial services and products, which includes car finance. Some firms that provide claims management services are regulated by a legal regulator instead, such as the Solicitors Regulation Authority.
You can check a firm on the FCA Firm Checker or the SRA Register. If a firm contacts you and you believe it is not authorised by the FCA or a legal regulator, the FCA asks you to contact it.
2. Understand the fees before you sign
If you use a CMC, you will pay a fee. The FCA says it has capped fees for financial services claims. For claims started on or after 1 March 2022, the cap depends on the size of the award. On awards from £1 to £1,499, the maximum is 30% before VAT, up to £420 before VAT, which is £504 with VAT. The percentage falls for larger awards, and the FCA publishes the full table on its page.
The FCA adds that the cap does not apply if you choose to pursue a claim in court with a CMC, where you may pay a higher percentage.
Before you sign, an FCA authorised CMC must give you:
- A one-page summary of the key information, including your cancellation rights.
- A detailed breakdown of how it will charge you, with examples, which the FCA describes as a cost illustration.
- A 14-day cooling-off period during which you can cancel without being charged.
If fees become payable, the CMC must give you an itemised bill showing the work done and how the charges were calculated. If you cancel after the cooling-off period, the FCA says any termination fee must be reasonable and must reflect the work already carried out.
3. Make sure you only have one representative
The FCA warns that if you sign up with more than one firm you may have to pay fees to end the agreement, or face several success fees, and it could delay the money you are owed. Some people sign up without realising it, so check your emails and post before you agree to anything new.
The FCA says authorised CMCs should carry out onboarding checks to confirm you are not already represented, and should only enter into an agreement with you once any previous agreement has ended.
4. Look at how the firm contacted you
The FCA says authorised CMCs must not send you emails or texts you have not agreed to receive, make marketing calls unless you have agreed, approach you in person, or use high-pressure selling such as asking for an on-the-spot decision.
If you receive an email or letter you did not ask for, the FCA says you can report it to the Information Commissioner's Office. You can also forward suspected spam or scam texts to 7726. The FCA has separately warned about scammers who pose as lenders and offer fake compensation, so check any message against the FCA's list of lenders.
5. Ask about realistic outcomes
The FCA says CMCs should be able to tell you how likely your claim is to succeed, and should tell you if it is unlikely. An authorised CMC must also ask you to confirm that you do not want to make the claim yourself for free.
Be cautious of any firm that quotes specific amounts. When the SRA and FCA warned firms in July 2025, the FCA said it had seen law firms and CMCs advertising highly speculative figures. Nobody can promise what a particular agreement will produce, and that includes us.
6. Know how to complain if things go wrong
The FCA says to complain to the firm first, and it has published a template letter for this. If you are unhappy with the reply, or the firm does not respond within eight weeks, you can take your complaint to the Claims Management Ombudsman if it is a CMC, or the Legal Ombudsman if it is a law firm.
If you think you were signed up without your consent, misled or treated unfairly, the FCA says you can ask to leave your contract for free, and you may be owed compensation from the firm.
Questions to ask any firm before you sign
- Are you authorised, and by whom? What is your register entry?
- Can I see the one-page summary and the cost illustration before I decide?
- What is the maximum fee in pounds on a typical award, including VAT?
- What happens if I cancel in the first 14 days, and after that?
- Will I be charged a fee to leave, and how is it worked out?
- How will you contact me, and how often will you update me?
- How likely is my claim to succeed, and what happens if it does not?
- Have I already signed with another firm without realising?
For the wider picture on timing, our guide to whether to wait or complain now sets out where the process stands, and our complete guide to car finance claims covers the background.
Important information
This article is general information, not legal or financial advice. It summarises FCA and SRA guidance and does not recommend or rank any firm. PCP Missold is a claims management company and has set out its own position in the introduction.
Fee caps and rules can change. Check the FCA's page for the latest figures before you decide. Information is correct at 21 October 2026.
