Key facts
- UK officials executed search warrants at five companies in London, Liverpool, Bolton, Burnley, and Swansea.
- Laptops, mobile phones, and documents were seized.
- Over 12 million complaints about nuisance marketing texts have been submitted since September 2025.
- The crackdown targets companies involved in the car finance mis-selling scandal.
- The FCA's £7.5bn compensation scheme for car finance mis-selling victims was partly suspended due to legal challenges.
UK officials have seized electronic devices and documents after executing search warrants at five companies across England and Wales as part of a crackdown on spam text messages related to the car finance mis-selling scandal. The Information Commissioner's Office (ICO) led the operation, targeting firms believed to be responsible for sending millions of unsolicited texts.
This action comes in response to a surge in complaints, with over 12 million submitted by the public since September 2025. These messages are from claims management companies (CMCs) and other businesses seeking to capitalize on the billions of pounds in compensation expected from the car finance scandal. The Financial Conduct Authority (FCA) had announced a £7.5bn compensation scheme in March, but it has faced legal challenges and was partly suspended, with a hearing expected in December or February.
Andy Curry, head of investigations at the ICO, stated that the raids send a clear message to the claims management sector to comply with the law. The seized items included laptops, mobile phones, and documents. The companies under investigation are believed to have collectively sent 170 million texts between September 2025 and May of this year.
The ICO is collaborating with the FCA, the Advertising Standards Authority, and the Solicitors Regulation Authority to address poor practices within the motor finance claims industry. The FCA has already taken action against misleading adverts, with over 1,200 removed or amended since January 2024. Some firms have faced enforcement actions, reduced fees, or allowed consumers to exit contracts without charge.
The ICO has the authority to obtain warrants for searches under the Privacy and Electronic Communications Regulations. The FCA emphasizes that consumers do not need to use a claims management company or law firm, as they can complain for free using a template letter available on its website. The FCA has launched a nationwide advertising campaign to promote this free service.