The Financial Conduct Authority (FCA) has launched a nationwide advertising campaign aimed at helping millions of car finance customers make complaints directly to lenders without using claims management companies or law firms.
The regulator said the initiative is designed to increase consumer confidence and awareness of the free resources available to those who may be entitled to compensation as part of the ongoing motor finance redress process.
Research commissioned by the FCA found that more than a quarter (27%) of car finance customers lack confidence in making a complaint themselves and believe they need to use a claims management company (CMC) or solicitor.
However, the FCA is encouraging consumers to use its free complaint tools, including a template complaint letter available on its website.
Sheree Howard, executive director at the FCA, said: “Many people who may be owed compensation aren’t sure where to start or don’t realise they don’t have to pay someone to make a complaint.
“Our free tools are there to help people feel claim confident – so they can get any money owed back without it costing them a penny.”
The regulator’s research also revealed that while 59% of car finance customers have either made a complaint or are considering doing so, almost a quarter (23%) remain unsure about their options.
Running from 27 July to 6 September, the £2m campaign will be delivered across television, radio, print, outdoor advertising and social media channels.
The FCA said the advertising is expected to reach consumers nationwide, including through more than 2,000 outdoor placements, national radio stations, major print publications and social platforms such as Facebook, Instagram and TikTok.
The campaign directs consumers to the FCA’s free complaint resources, with more than 80% of survey respondents stating that access to a template complaint letter would make them more confident about approaching their lender directly.
The latest initiative comes as the regulator continues work on its proposed motor finance redress scheme.
In March, the FCA announced plans for a compensation programme that could see consumers receive an estimated £7.5bn in redress.
The scheme is currently partially suspended while legal challenges are considered, although the regulator has stated it intends to defend the proposals.
According to the FCA, the campaign forms part of wider efforts to ensure consumers understand their rights and are able to access any compensation due without unnecessary costs or third-party fees.