The FCA has confirmed it is investigating a claims firm after the courts allowed it to be named
The Financial Conduct Authority has publicly confirmed that it is investigating The Claims Protection Agency Ltd over its motor finance claims work, following a legal challenge by the company to prevent the regulator from naming it.
The enforcement investigation relates to concerns about TCPA’s advertising and sales practices when promoting potential motor finance claims and referring customers to law firms. The investigation became public after a High Court judge rejected the company’s attempt to block the FCA from disclosing its identity.
In a statement, the regulator said it is examining what customers were told about the level of compensation they might receive, whether they were informed that they could pursue claims without charge, and whether they were pressured into signing up. The FCA stressed that it has not reached any conclusions on whether TCPA breached regulatory requirements.
TCPA operates under a number of trading names, including My Claim Group, Martin’s Tips, Karen’s Claims, Express PCP and The PCP Guys. It brought a judicial review challenge to prevent the FCA from announcing the investigation, arguing that it should remain anonymous.
In an anonymised judgment issued in October, Mr Justice Fordham dismissed the application. The Court of Appeal refused permission to appeal in December. This led to the release last week of a further ruling by Fordham J, which named TCPA as the firm under investigation.
The FCA only names firms it is investigating in exceptional circumstances. According to the High Court judgment, the regulator wrote to TCPA in July expressing concerns about misleading advertisements which suggested average potential refunds of £4,000.
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The FCA also raised issues about the firm’s approach to customers who had started but not completed the onboarding process, questioned whether TCPA adequately identified and protected vulnerable customers, and cited an example of routine failure to inform customers that they could pursue claims for free.
The court heard that TCPA had previously received regulatory warnings and had acted contrary to assurances it had given. Following discussions with the FCA, the firm agreed to a voluntary requirements arrangement, under which it stopped onboarding new customers, ceased publishing new financial promotions and withdrew existing promotions.
Despite this, the FCA decided to proceed with a formal enforcement investigation and to make it public. The regulator concluded that doing so was necessary to protect consumers and maintain confidence in the UK financial system.
The High Court judgment noted that TCPA had run a well-funded and high-profile marketing campaign across multiple platforms, including prime time television, social media and public transport advertising. The court accepted the FCA’s view that the scale of the firm’s marketing meant any potential harm to consumers could be substantial.
Mr Justice Fordham ruled that the FCA had properly applied its enforcement guidance and had not acted unreasonably in deciding to name the firm.
A statement on the My Claim Group website says the business has temporarily paused new customer sign-ups while it updates its advertising and sign-up processes, in agreement with the FCA.
According to Companies House, the Manchester-based company is owned by Jonathon Howarth and John Johnstone and is subject to two charges held by Katch Fund Solutions.
The FCA’s action marks a further step in its wider effort to ensure consumers understand that they do not need to use claims management companies or law firms to bring motor finance claims.