FCA Launches a £2 Million 'You Don't Need to Pay to Claim' Car Finance Campaign as 27% of Consumers Say They Lack Confidence to Complain Alone

The Financial Conduct Authority has put money and media behind a simple message to people who bought a car on finance: you don't need to pay to claim. The regulator's campaign, which it says is backed by £2 million, runs from July 27 to September 6, 2026 and uses television, radio, print, billboards and social media. It is aimed at motor finance customers who may be owed compensation under the redress scheme the FCA put in place after years of scrutiny of historic commission arrangements between lenders and car dealers. The information below comes from the FCA's own press release, which gives both the campaign details and the research that prompted it. Dates on the page differ slightly, with the release showing a first-published date of July 27 and the page metadata showing July 23, so readers should check the FCA site for the current version.

The message and the research behind it

The central message is that consumers can complain directly to their lender for free and, if they are unhappy with the outcome, take the matter to the Financial Ombudsman Service, also free, without involving a claims management company or a law firm that might charge a fee. The FCA's concern is that fees reduce the amount consumers keep. It had earlier run a first phase of the campaign, reported by Legal Futures on September 15, 2025, which cost £1 million and warned that people using a claims firm could lose over 30% of their compensation. The latest phase doubles the spend.

To judge whether the message was reaching people, the FCA commissioned a Kantar survey of 1,000 people, conducted from June 25 to 28, 2026. The results are the most useful part of the release. Some 27% of respondents said they lack the confidence to complain without the help of a claims management company or law firm. Some 59% said they had made a claim or were considering one, and 23% were unsure. These figures describe a population that is engaged with the issue but not certain about how to proceed, which is the situation in which a paid intermediary can seem attractive.

The FCA responded with a practical tool: a free template complaint letter. According to the release, more than 80% of the survey respondents said the template would make them more confident about complaining directly. The regulator did not say in the release how many people have downloaded or used the template, so its real-world effect cannot be assessed from this source.

Reach so far

The FCA also gave figures for the campaign's reach. It said video on demand had generated about 11 million views, that there had been 2,180 outdoor placements, and that print circulation was close to 3 million. These are regulator-reported delivery figures. They show how widely the material was distributed, not how many consumers changed their behaviour, and the release does not say whether claims to lenders or to claims firms have fallen as a result.

Sheree Howard of the FCA is quoted in the release on the regulator's concern that people should not pay unnecessarily. The release makes clear that the campaign sits alongside the redress scheme itself, which the FCA launched in March 2026. It puts the scheme's value at £7.5 billion, and it describes the scheme as currently partially suspended. The release does not give the reasons for the suspension in the part reviewed for this article, and readers should consult the FCA's scheme pages for the current position on timing and eligibility.

Why intermediaries matter in redress

When a large redress exercise is announced, claims management companies and law firms typically advertise heavily, often offering to handle the process for a percentage of the compensation. Some people value that service, particularly if they have lost paperwork or find the process daunting. The FCA's position, however, is that the scheme is designed so that consumers can claim without paying. By publicising the free routes, it is trying to ensure that the money intended for consumers goes to them. The 30% figure from the earlier phase illustrates why this matters: on a payout of several hundred pounds, a fee of that size can make a material difference to a household.

The campaign is also a response to the information gap that follows a complex regulatory decision. Many people do not know that they took out a loan with a discretionary commission arrangement, or that a complaint can be made without legal representation. The survey suggests that even among those who know the facts, confidence can be low. The template letter and the broad-based advertising are attempts to address both.

What consumers can do

Consumers who think they were affected should start by checking their finance agreements and contacting the lender directly, using the template or their own wording. If the lender rejects the complaint or does not respond in time, the Financial Ombudsman Service can review it at no cost. Anyone who decides to use a claims firm or a law firm should ask in advance what it will charge and how that compares with the expected compensation, and should keep copies of all correspondence. The FCA's website carries its guidance and the template.

The campaign will run until September 6. Whether it reduces use of paid intermediaries will become clear only when the FCA, lenders and the ombudsman publish data on complaint volumes and on how claims were submitted. This article summarises a regulator's press release and a survey it commissioned, and is general information and not legal or financial advice.