Is a cold call about mis-sold PPI or car finance a scam?
Claims management calls about PPI or car finance may be legitimate or may be fee-charging scams. Genuine claims do not require upfront fees.
Last reviewed: 1 August 2026
Explanation
Following major PPI and car finance mis-selling rulings, legitimate claims management companies (CMCs) do help consumers recover compensation. However, many companies operating in this space are predatory — they charge large upfront fees, take excessive percentages of successful claims, or are not registered with the Financial Conduct Authority. Some cold-callers collect your personal and financial details with no intention of making a genuine claim, then use the data for identity fraud. You can make PPI and car finance complaints to your bank and the Financial Ombudsman Service entirely free, without any intermediary. Upfront fees are prohibited for regulated claims management.
The cold call itself deserves scrutiny before its content does. These campaigns buy contact lists and dial at scale, which is why the caller often knows nothing about you beyond your name — the confident opener about compensation you are 'owed' is a script sent to thousands of people, most of whom have no eligible claim at all. Data harvesting is frequently the real business: the 'claim assessment' collects your bank, address, and finance agreement details, which are then sold on or used for follow-up fraud in which a second caller, referencing your claim, poses as your bank or a court.
Before engaging with any claims firm — including a legitimate one — it is worth being clear about what you would be paying for. The complaint process is designed for consumers to use directly: you write to the firm that sold you the product, and if unsatisfied, escalate to the ombudsman at no cost. A claims company does the same thing with the same form, minus a large slice of any award. If you value the convenience, choose a regulated firm yourself from the official register; never buy the service from whoever happens to phone you.
Common red flags
- Request for an upfront fee to begin the claim
- Company not registered on the FCA's claims management register
- Promises a specific compensation amount before reviewing your case
- Requests sensitive financial details immediately by phone
What to do now
- Check the company on the FCA register before engaging
- Never pay an upfront fee for a claims management service
- Complain directly to your bank and then the Financial Ombudsman Service for free
- Report unauthorised claims management to the FCA
Frequently asked questions
Can I reclaim car finance commission myself without a claims company?
Yes — you can complain directly to your finance provider and then escalate to the Financial Ombudsman Service at no cost. You do not need a claims management company.
The caller said records show I'm owed compensation — how would they know?
They don't. The claim is a script dialled to purchased contact lists at scale. No caller has access to records proving you are owed anything — the certainty exists to get you talking and sharing details.
What details should I never give a claims cold-caller?
Bank account numbers, card details, copies of ID, or your finance agreement references. Harvested claim details fuel follow-up fraud, including second calls impersonating your bank or a court that reference your 'claim' to sound genuine.