Regulator bans adverts using unauthorised clips and misleading compensation claims
The Financial Conduct Authority has banned a series of misleading adverts issued by a claims management company after identifying multiple breaches of its rules.
The action was taken against Conclusive Financial Ltd, which also operates under the name PCP Refunds. The firm was required to remove its advertising and amend or take down its website until it complied with regulatory requirements.
The FCA found that the adverts used edited and unauthorised clips of Martin Lewis, creating the impression of endorsement. The materials also displayed the FCA’s logo without permission.
In addition, the regulator raised concerns about claims that consumers would receive an average of £1,846 in compensation for motor finance claims. The adverts did not explain how this figure had been calculated.
The FCA also identified issues with the firm’s promotion of a “no win, no fee” service. It found that the advertising did not provide sufficient information about potential charges, including exit fees, and failed to make clear that consumers could pursue claims without using a claims management company.
Consumers can make motor finance complaints directly to their lender or through the Financial Ombudsman Service at no cost.
Following the FCA’s intervention, the firm has removed the adverts in question. The regulator stated that it will continue to take action where firms fail to meet advertising standards.
Alison Walters, director of consumer finance at the FCA, said that consumers should exercise caution when viewing adverts that appear to be endorsed by well-known individuals or regulators. She noted that enforcement action will be taken where rules are breached.
The action forms part of wider regulatory efforts to address concerns in the claims management sector. A joint taskforce involving the FCA, the Solicitors Regulation Authority, the Advertising Standards Authority and the Information Commissioner’s Office has recently been established to improve standards across the market.
The FCA reported that since January 2024, claims management companies have removed or amended 899 misleading adverts following regulatory intervention.
Consumers who believe they have been misled are advised to raise complaints directly with the firm and, if necessary, escalate the matter to the Financial Ombudsman Service. Complaints relating to legal service providers may also be referred to the Legal Ombudsman.