The UK's financial watchdog has launched a formal enforcement investigation into a claims management company at the centre of the widespread car finance mis-selling scandal.
Investigation Into Sales and Advertising Practices
The Financial Conduct Authority (FCA) is examining The Claims Protection Agency (TCPA), which operates under the brand My Claim Group. The Manchester-based firm is under scrutiny for how it has attracted customers seeking redress for potentially mis-sold car loans.
The regulator's probe focuses on three key areas: what customers were told about potential compensation amounts, whether they were informed they could make a claim for free, and if they faced pressure to sign up. The investigation centres on TCPA's sales and advertising tactics, which targeted individuals who believe they were wrongly sold car finance agreements.
The Backdrop of a Massive Compensation Scheme
This action comes against the backdrop of a major industry-wide redress scheme announced by the FCA during 2025. The regulator believes an estimated 14 million car finance agreements may have been mis-sold, prompting plans for a comprehensive compensation programme.
The FCA has consistently stated that consumers do not need to use a claims management company (CMC) or a law firm to access its scheme. It has warned that people risk losing more than 30% of any compensation awarded to unnecessary fees charged by such firms.
However, a November report backed by MPs and peers suggested potential victims might secure greater redress through the UK courts than under the FCA's proposed scheme. The All-Party Parliamentary Group on fair banking expressed concern that the official redress scheme could short-change millions of customers.
Firm Pauses New Sign-Ups Amid Scrutiny
TCPA, which has also traded under names such as Martin's Tips and Karen's Claims, advertises for motor finance claims and refers customers to solicitors. A message on the My Claim Group website states it has "temporarily paused new customer sign-ups" while it improves its advertising and sign-up processes.
The website references the FCA's estimate that consumers can typically expect an average payout of £700 per car finance agreement under its scheme. A December post clarifies: "This is lower than earlier industry estimates. Any older figures you may have seen – including estimates around £4,000 – are no longer accurate following the FCA's updated position."
Earlier in 2025, The Times uncovered a promotional video by boxer Tyson Fury for My Claim Group, where he claimed people could be owed up to £4,000 in compensation. The Instagram post has been removed, though a Facebook post remains.
Following an application to the FCA in August, TCPA is required to stop onboarding new customers, cease publicising new financial promotions, and withdraw all existing ones. The FCA stated that publicising its investigation allows TCPA's customers to consider their options. The regulator has not yet reached any conclusions on whether TCPA breached regulatory requirements.
