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UK raids target nuisance car finance text marketing tied to mis-selling
The UK Information Commissioner’s Office executed search warrants at homes and businesses linked to five companies, after the public filed more than 12 million nuisance text complaints since September 2025.
The UK Information Commissioner’s Office (ICO) carried out raids across the country in a crackdown on nuisance car finance text messages tied to the wider mis-selling scandal, seizing laptops, phones and documents from locations linked to five companies. The warrants were executed on Wednesday at homes and businesses in London, Liverpool, Bolton, Burnley and Swansea. The ICO said the linked firms are believed to have sent a combined 170 million texts to the public between September 2025 and May this year, as claims management companies and other businesses compete for a share of compensation expected to be paid to motorists.
The mis-selling involves drivers being overcharged for car loans because of commission arrangements between lenders and car dealers from 2007 to 2024. The FCA announced a UK-wide compensation scheme worth £7.5 billion in March, and had expected to start paying an average of £829 to affected people this year, but a court ordered parts of the scheme suspended pending a hearing in December or February.
This week’s raids were described by the ICO as a message to the claims management sector to comply with the law or face further action. The ICO said it is coordinating with the Financial Conduct Authority, the Advertising Standards Authority and the Solicitors Regulation Authority to address poor practices in motor finance claims, while noting that more than 1,200 misleading adverts have been removed or amended since January 2024.