You may have seen them while scrolling through Facebook, Instagram or TikTok: a friendly-looking post promising a quick car finance check, a money-saving tip or help claiming compensation.
It might look like independent advice from an ordinary driver. But the Financial Conduct Authority (FCA) has warned that some of these “money tips” adverts are actually paid promotions from claims management companies or law firms.
The concern is not that every car finance advert is fraudulent. It is that some promotions do not make their commercial purpose clear, exaggerate what you might receive, or fail to explain that you can complain for free.
So, what does the FCA warning mean for you? And what should you do if you have already clicked on an advert or signed up to a claims service?
What the FCA found
In a press release published on 8 June 2026, the FCA warned consumers to be wary of misleading car finance claims adverts on social media.
Some adverts appear to come from an individual offering impartial money advice. In reality, they may be promoting a business that wants you to sign up for help with a motor finance claim.
The FCA highlighted several warning signs. These include adverts that:
- Do not clearly say they are paid promotions
- Use logos, imagery or references to suggest approval from well-known organisations or public figures
- Use edited or unauthorised clips of money commentators
- Make compensation sound guaranteed or unusually large
- Fail to explain that you can make a complaint yourself for free
- Encourage you to complete a “free compensation checker” without explaining what happens next
It seems designed to feel informal and reassuring – more like a useful tip from a friend than a financial promotion. That can make it harder to spot who is behind the advert and what they are selling.
The FCA says more than 1,000 misleading adverts have been removed or amended since January 2024. It has also reported that more than 28,000 consumers have been able to exit claims contracts without charge following regulatory action.
The important bit: claiming can be free
The FCA’s message is straightforward: you do not need to use a claims management company or law firm to make a car finance complaint.
You can contact your lender yourself. The FCA also provides information and a template complaint letter to help you understand the process.
That is the basis of its nationwide campaign, launched on 27 July 2026, under the message: “You don’t need to pay to claim.”
The campaign follows research showing that 27% of car finance customers lack confidence about making a complaint without professional help. At the same time, 59% of customers surveyed had made or were considering making a claim.
If you choose to use a claims management company or law firm, that is your decision. But it should be an informed one. The FCA warns that fees may be more than 30% of any compensation you receive. And if you sign up with more than one firm, you could potentially face more than one fee for the same claim.
For example, if you received £2,000 and agreed to a 30% fee, that would be £600 before considering any applicable taxes or other contractual charges. The exact amount depends on the agreement, but the principle is worth remembering: “no win, no fee” does not always mean “no cost”.
Why social media ads can be misleading
Social media adverts are often short, visual and designed to encourage an immediate click. That is useful when you are looking for a recipe video. It is less helpful when you are being asked to enter personal and financial information.
A post may use wording such as:
- “You could be owed money”
- “Check your car finance now”
- “Find out in 30 seconds”
- “Don’t miss out”
- “Free compensation check”
None of these phrases automatically proves an advert is misleading. But they should prompt you to slow down and look more closely.
Who published the post? Is the business name visible? Is the post clearly labelled as an advert? What will happen to your details after you submit the form? And are the fees explained before you agree to anything?
A genuine-looking profile picture or familiar logo is not proof of an official connection. The FCA has specifically warned that some adverts misuse imagery and references linked to public figures, media outlets or public bodies.
Hollywood screenwriters understand the power of a convincing character. Online advertisers do too. A post that appears to come from “someone like you” can feel more trustworthy than a formal advert, even when it is promoting a paid service.
If you have not signed up
If you are considering a car finance complaint, start with reliable information rather than a social media advert.
The FCA’s car finance complaints guidance explains how to complain directly and includes a free template letter. It also sets out information about the current motor finance redress arrangements.
At the time of writing, the FCA says the redress scheme is partially suspended because of legal challenges. That means the position may change, so it is sensible to check the FCA’s latest information rather than relying on an old post, video or screenshot.
Before sharing your details, consider these simple steps:
- Go to the source. Type the FCA’s website address into your browser instead of clicking a sponsored link.
- Check the business. Look for the firm’s name, contact details and regulatory status.
- Read the fee terms. Check how the fee is calculated, when it becomes payable and whether there are exit charges.
- Avoid duplicate claims. Do not sign up to several firms to “cover all bases”.
- Keep your documents. Save copies of your finance agreement, correspondence and any advert you relied on.
A screenshot can be useful if an advert disappears later. It is the digital equivalent of keeping the receipt – not glamorous, but often handy.
If you have already clicked
Clicking an advert does not necessarily mean you have entered a contract. But if you completed a form, gave consent or received messages, take a moment to establish what happened.
Look through your emails and text messages. Search for:
- The name of the company
- A contract or terms and conditions
- Details of any agreed fee
- Information about cancellation
- Evidence of what data you provided and how it may be used
Do not ignore paperwork simply because the original advert promised a “free check”. A free initial check may lead to a paid agreement, and the details should be explained before you commit.
If you believe you were signed up without proper consent, misled by an advert or charged an unfair fee, complain directly to the firm first. The FCA provides a template complaint letter for claims management companies and law firms.
The FCA says that any exit fee should be reasonable and reflect the work actually completed. If you were misled or your data was handled improperly, you may be able to ask to leave the agreement without paying.
If the firm does not resolve the matter, you may be able to take your complaint to the relevant independent ombudsman service. The FCA’s guidance explains which route may apply.
Do not confuse finance claims with car insurance
This warning relates to adverts about motor finance complaints and potential redress. It is separate from arranging your car insurance.
You should still be careful when buying or renewing cover online. Check what is included, understand the excess, and make sure the policy reflects how you use your vehicle.
T&R Direct Insurance Services offers motor insurance from an extensive panel of leading UK insurers, with options for cars, vans, motorbikes, commercial vehicles and more. You can also find car insurance information here.
And when you receive any financial or insurance paperwork, it is worth checking the small print. The wording may not be thrilling – few terms and conditions have inspired a television drama – but it can help you understand the cover, costs and exclusions before you agree.
A safer way to respond
The FCA warning does not mean you should ignore every advert or assume that no car finance complaint is valid. It means you should avoid making a rushed decision based on a post that looks like friendly advice but does not clearly explain who is behind it.
Remember:
- You can complain about car finance yourself for free.
- Claims firms and law firms may charge more than 30% of compensation.
- You should not sign up with multiple firms.
- Check fees, cancellation terms and consent carefully.
- Use the FCA’s website for current information.
- If something feels unclear, pause before sharing your details.
And if you have already signed up, do not panic. Gather your records, read the agreement and complain directly if you think you were treated unfairly.
A few minutes of checking now could save you a sizeable slice of any compensation later – which is a much better use of your money than paying for someone else’s “tip” to appear in your feed.
About The Author: Penny
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