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 June 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.
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.