View Image

UK regulators are stepping up a crackdown on firms chasing a cut of car finance payouts. Four regulators have joined forces to tackle the problem, as claims management companies (CMCs) and consumer law firms try to get a cut of motorists' compensation.

Drivers, road users and motorists are in line for compensation after a supreme court ruling in August. But the ruling comes with a sting in the tail, with the FCA and the Solicitors Regulation Authority (SRA) concerned drivers don't know they could be compensated for free.

The two bodies are launching the crackdown with the Information Commissioner’s Office and the Advertising Standards Authority. The SRA said it was investigating 76 law firms and had closed five firms “to protect the public”.

READ MORE Drivers issued fin

See Full Page