UK financial regulators have launched a review of claims management firms over concerns they are using misleading tactics to target consumers seeking compensation for financial scandals.

The Financial Conduct Authority has launched a review of claims management companies over concerns about aggressive marketing, misleading advertising and unfair exit fees, as CMCs target victims of the car finance scandal (2007-2024) charging up to 33% of payouts, while the FCA has already removed or amended 800 adverts and helped 28,000 consumers exit contracts free of charge.