Motor Finance Claims UK -
CMC Profile is one of the many claims management companies (CMCs) operating in the car finance sector. These companies specialise in submitting complaints on behalf of consumers who believe they have been unfairly treated by their lenders during the period from 6 April 2007 to 1 November 2024. The FCA estimates that there are 12.1 million eligible agreements (FCA, March 2026) by this scheme, with a total redress amounting to £7.5 billion (FCA estimate).
What Does Motor Finance Claims UK Do?
Motor Finance Claims UK operates within the framework of the Financial Conduct Authority's (FCA) car finance compensation scheme. This scheme aims to address issues arising from
discretionary commission arrangements (DCAs), where lenders paid salespeople based on the terms of the agreements, potentially incentivising them to push consumers into more expensive deals than necessary.
Many affected consumers have turned to CMCs like Motor Finance Claims UK for assistance in submitting their claims and pursuing compensation. However, it is important to understand that you do not need a
claims management company to make your complaint. You can
complain directly to your lender for free.
Why You Do Not Need a Claims Management Company
CMCs such as Motor Finance Claims UK provide a service of lodging complaints on behalf of consumers. While this may seem convenient, it is crucial to note that the FCA estimates an FCA-estimated scheme average of £829 per eligible agreement (FCA estimate), and CMCs typically charge 25-40% of any compensation received. In some cases, they might also add VAT to their fees.
To illustrate, if a consumer receives the estimated FCA-estimated scheme average of £829 per eligible agreement and Motor Finance Claims UK charges 30%, the company would take £210 in fees (including potential VAT), leaving the consumer with only £490. This substantial fee can significantly reduce the net compensation received by consumers.
You do not need to use a CMC; you have the right to complain directly to your lender for free. The process is straightforward and does not require any additional cost or third-party involvement.
How to Verify FCA Authorisation
Since April 2019, all claims management companies must be authorised by the Financial Conduct Authority (FCA). To check if a CMC like Motor Finance Claims UK is authorised, follow these steps:
1.
Visit the FCA Register: Go to https://register.fca.org.uk/s/.
2.
Search for the Company Name: Enter "Motor Finance Claims UK" in the search bar.
3.
Review the Registration Details: Ensure that the company is listed and has a current authorisation status.
If Motor Finance Claims UK appears on the register with an authorised status, it means they are compliant with FCA regulations. However, always remember that you can still make your complaint directly without their involvement.
Sources and References
- Financial Conduct Authority (FCA). (2024). Car finance redress scheme: key facts.
- FCA Register. https://register.fca.org.uk/s/
By understanding the role of CMCs, the average compensation amounts, and how to verify authorisation, you can make an informed decision about whether to use a claims management company or handle your complaint directly with your lender.
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.
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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.