On 31 July 2025, the Solicitors Regulation Authority (SRA) issued a press release in which both it and the Financial Conduct Authority (FCA) warn law firms and claims management companies (CMCs) to make sure that they are complying with rules around how motor finance commission claims should be handled.

The press release states that if, following the Supreme Court judgment, the FCA concludes motor finance consumers have lost out, it is likely to consult on a free redress scheme for relevant motor finance customers. Any scheme would set out rules for how claims should be assessed and calculated and would be easy for consumers to understand and access.

The press release adds that:

  • The SRA and FCA expect law firms and CMCs to inform clients of the existence of a redress scheme, or where there is a realistic prospect of one being introduced, which would allow them to pursue a claim for themselves, free of charge. This must be done before a client signs any agreement with them. This applies even if the redress scheme has not yet been confirmed.
  • Before entering into an agreement with potential clients, SRA rules require law firms to make consumers aware of their rights of termination under the agreement, and any fee that may be payable by consumers if they do not go ahead. Any charges that are applied by law firms or CMCs must be fair and reasonable.
  • The FCA’s rules require CMCs to inform customers of their right to exit the agreement at any time and any fee that may be payable by them. Any fee must be reasonable and reflect the work actually undertaken.