How to Check if a CMC Is FCA Authorised

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How to Check if a CMC Is FCA Authorised

Last updated: 28 February 2026

How to Check if a Claims Management Company Is FCA Authorised Claims management companies (CMCs) submit complaints on behalf of consumers, often in the context of car finance disputes. However, it is important for consumers to know that they can complain directly to their lender for free. The Financial Conduct Authority (FCA) oversees these CMCs and requires them to be authorised since April 2019. This article will guide you through verifying a CMC’s FCA authorisation using the FCA Register, detailing what to look for.

How Can You Verify a Claims Management Company's Authorisation?

To ensure that a claims management company is legitimate, it is crucial to check its FCA authorisation status. The FCA authorises and regulates these companies to protect consumers from fraudulent or unethical practices. Since April 2019, all CMCs must be authorised by the FCA; previously, they were regulated by the Ministry of Justice. CMCs often charge between 25-40% of any compensation received (plus VAT in some cases). For example, on an average £829 payout (FCA estimate), a CMC charging 30% would take £210, leaving the consumer with only £490. Given that the FCA motor finance scheme covers 12.1 million eligible agreements (FCA, March 2026) with an estimated £7.5 billion total redress for the period from 6 April 2007 to 1 November 2024, it is essential to ensure you are working with a legitimate and authorised CMC.

Why You Do Not Need a Claims Management Company

Consumers often believe that they need a claims management company to handle their car finance disputes. However, this is not the case. You can complain directly to your lender for free. Direct complaints allow consumers to maintain control over their cases without incurring additional costs associated with CMCs. When you choose to complain directly, you avoid paying the high fees that CMCs typically charge. many lenders have processes in place to handle such complaints efficiently and fairly. This approach ensures that any potential compensation goes directly into your pocket rather than being significantly reduced by a CMC’s commission fee.

How to Verify FCA Authorisation

To verify if a claims management company is authorised by the FCA, follow these steps: 1. Visit the FCA Register: Go to the official FCA Register at https://register.fca.org.uk/s/. 2. Search for the Company Name: Enter the name of the CMC you are interested in. 3. Check the Authorisation Status: Look for the authorisation status and ensure that it is valid. The register will display if the company holds a current FCA permission. 4. Review Permissions: Check the specific permissions granted to the company, including any conditions or restrictions. Ensure they align with the services you need. By verifying these details, you can confirm that the CMC operates within the legal framework set by the FCA and is authorised to handle your car finance claims.

Sources and References

Financial Conduct Authority (FCA). (2024). Car Finance Redress Scheme.
FCA Register. https://register.fca.org.uk/s/

These sources provide full information on the authorisation process for CMCs, ensuring that consumers are well-informed about their rights and options in handling car finance disputes.

Key FCA Figures

The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.

You can complain to your lender directly for free. You do not need a claims management company.

--- MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.

Frequently Asked Questions

How do I check if a Claims Management Company is authorised by the Financial Conduct Authority (FCA)?

To verify if a CMC is FCA-authorised, you can search the FCA Register at fca.org.uk/register. Enter the company name or reference number to find their authorisation status and details about their permissions.

What information should I look for when checking a Claims Management Company's FCA registration?

When checking the FCA Register, ensure the CMC has 'Claims management services' listed under authorised activities. Also, verify that there are no restrictions or conditions on their permissions and check the company's registered name matches what you know.

Do I need to use a Claims Management Company for car finance issues?

You do not need a claims management company. You can complain directly to your lender for free if you have any concerns about your car finance agreement or dealings with the lender. CMCs are optional and may charge fees.

What happens if I find an unauthorised Claims Management Company offering services related to car finance?

If a company is not authorised by the FCA but offers claims management services, it's operating illegally. You should avoid using their services and can report them to the FCA via fca.org.uk/consumers/report-an-unauthorised-company.

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.