Laptops, cell phones and paperwork have been seized after officers carried out search warrants in a crackdown on claims corporations plaguing individuals with spam textual content messages concerning the automotive finance mis-selling scandal.
The UK’s Data Commissioner’s Workplace (ICO) executed warrants at properties and companies linked to 5 corporations in London, Liverpool, Bolton, Burnley and Swansea on Wednesday.
Greater than 12m complaints about nuisance advertising textual content messages have been submitted by the general public since September 2025 as claims administration corporations (CMCs) and different corporations try to seize a share of the billions of kilos in compensation anticipated to be paid out to motorists who had been mis-sold automotive loans.
The Monetary Conduct Authority (FCA) introduced a £7.5bn industry-wide compensation scheme for the thousands and thousands of victims of the scandal in March.
Authorized challenges, nonetheless, pressured the regulator to partially droop the scheme.
The FCA had anticipated to begin paying out £829 on common this yr to these affected by the scandal – by which drivers had been overcharged for loans on account of fee funds between lenders and automotive sellers between 2007 and 2024 – however a courtroom ordered the regulator to droop components of the scheme till a listening to in December or February subsequent yr.
The pinnacle of investigations on the ICO, Andy Curry, mentioned: “Persons are fed up with being bombarded by undesirable calls, texts and emails about automotive finance claims, and we’re taking motion.”
This week’s raids “ship a transparent message to the claims administration sector: adjust to the legislation or count on to listen to from us”, he mentioned.
The businesses linked to the searches are topic to persevering with investigation. They’re believed to be liable for sending a mixed 170m texts to members of the general public between September 2025 and Might this yr.
The ICO is working with the FCA, the Promoting Requirements Authority and the Solicitors Regulation Authority to deal with poor practices regarding motor finance claims by some CMCs, legislation corporations and lead era corporations.
The raids signify an escalation of the crackdown on rogue CMCs and different companies. On account of the FCA’s work, greater than 1,200 deceptive adverts have been eliminated or amended since January 2024.
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Some corporations face enforcement investigations, whereas others have needed to cut back their “unreasonable” charges or permit shoppers to stroll away from contracts freed from cost.
The ICO has the ability to use to the courts for a warrant to go looking premises as a part of investigations below the Privateness and Digital Communications Rules, the place proof could also be seized. This will embrace cell phones, laptops and sim farms: collections of units that home tons of or 1000’s of cell phone sim playing cards.
The FCA has mentioned there isn’t any want to make use of a CMC or legislation agency as a result of individuals can complain free of charge utilizing a template letter on its web site. This week it launched a nationwide promoting marketing campaign to direct individuals to the letter. It can run throughout TV, radio, print, billboards and social media till 6 September.
