Motor Finance Claims:
Informed Consent and Fee Transparency for CMCs and Law Firms

Plain English client onboarding for law firms and CMCs handling PCP and HP car finance commission claims — with fee transparency, evidence of informed consent, and full FCA Consumer Duty and SRA compliance.

Ensure transparency & Informed Consent in every claim

Law firms and claims management companies handling motor finance commission claims face an urgent challenge: how to pursue PCP and HP finance mis-selling cases ethically and compliantly, while maintaining client trust. The recent wave of motor finance claims – involving hidden commission car finance deals and discretionary commission arrangements – has drawn intense scrutiny from regulators.

  i agree offers a transformative solution: an informed consent platform that makes every client agreement clear, transparent, and provably understood. We help you meet FCA Consumer Duty and SRA standards, ensure fee transparency, and ultimately reduce complaints.

The Motor Finance Claims Boom: PCP and HP Commission Mis-Selling and What Comes Next

Between 2007 and 2021, millions of UK consumers took out car finance agreements (mostly PCP and HP deals) without being told that dealers or brokers were paid a discretionary commission. This hidden commission model let brokers raise interest rates to earn more – a blatant conflict of interest. The FCA banned these commission arrangements in 2021 as “harmful and unfair”, but by then countless deals were already in force. Now, consumers are filing car finance commission claims en masse, alleging they were mis-sold loans on an unfair basis.

The Supreme Court issued its judgment on 1 August 2025, ruling that in certain circumstances motor finance companies entered unfair relationships with consumers where commission was not properly disclosed — meaning commission is repayable. While the ruling was narrower than the Court of Appeal's earlier decision, the FCA moved immediately to confirm an industry-wide redress scheme. In October 2025 the FCA published its consultation on the scheme, which covers regulated motor finance agreements from 6 April 2007 to 1 November 2024. Final FCA rules are expected in early 2026, with compensation payments beginning later in 2026 — making this one of the largest coordinated redress exercises ever undertaken in UK retail finance, with potential costs estimated between £9 billion and £18 billion.

But with opportunity comes intense regulatory scrutiny. Both the Solicitors Regulation Authority (SRA) and Financial Conduct Authority (FCA) have put the motor finance claims sector under the microscope. If your firm is helping drivers reclaim unfair PCP/HP costs, you must do it the right way – now – or risk regulatory action and reputational damage.

Why the SRA and FCA Are Demanding  Transparency from Motor Finance Claims Firms Right Now

In a rare joint move, the SRA and FCA issued a stark warning (July 2025) to firms chasing these claims. They are “very concerned” about poor practices in the motor finance claims market. Key regulatory red flags include:

• Misleading Marketing: Some firms advertise inflated or “highly speculative” compensation figures and guaranteed payouts. Regulators insist on honesty about success chances.

• Failure to Flag Free Redress: Firms must inform clients about free-to-claim alternatives, such as any upcoming FCA redress scheme, before signing them up. Hiding this fact is unacceptable.

• Unclear Fees & Cancellation Terms: Charging 30–36% success fees (common in these cases) is legal only if clients explicitly understand the cost and can exit easily. The SRA requires that termination rights and any fees for not proceeding are explained in plain English upfront.

“Law firms have a duty to act in clients’ best interests... if they mislead clients, fail to get their explicit consent, do not explain cost information clearly or are not sharing information on free alternative routes before signing them up, they are clearly failing.”

SRA Chief Executive Paul Philip

The FCA’s Sheree Howard echoed that consumers who sign up now might “end up paying for a service they do not need and losing up to 30% of any money they may receive”. It’s a clear message: transparency, informed consent, and fair practice are non-negotiable.

Beyond this specific warning, the new FCA Consumer Duty amplifies expectations for customer understanding. Firms must ensure communications enable customers to genuinely understand products, features, and risks – not bury key facts in fine print. Similarly, SRA Codes demand that solicitors give information “in a way clients can understand” so they can make informed decisions about services and pricing. In short, regulators now expect proof that your clients know what they’re signing up for.

The bottom line? If you handle motor finance commission claims, you must clean up your client onboarding immediately. Miscommunication or opaque practices could lead to complaints, regulatory investigations (the SRA already has 89 active probes into firms in this space), or even unenforceable contracts. It’s not just about avoiding trouble – it’s about doing right by clients who trust you with their claim.

What CMCOB Now Specifically Requires and Where Most Firms Fall Short

The joint SRA/FCA warning was a signal. The regulatory detail that followed is the reality.

Since that warning, the compliance bar for CMC onboarding has been set in much more specific terms. Three areas in particular deserve attention.

The standalone statement. Under CMCOB 4.3.1R(1A), before a client signs up, they must confirm in a signed, standalone document — in a durable medium — that they are aware the free redress scheme exists and still choose to use a CMC. This cannot be a checkbox buried in your terms. It has to be a separate, deliberate, evidenced act. 

Exit fees and termination. As the redress scheme rolls forward, clients will leave. CMCOB 6.2.1R requires itemised termination invoices explaining what work was done and how fees were calculated. CMCOB 2.1.12R(4) caps charges at what is reasonable based on work actually carried out. Firms that cannot evidence their process will struggle to justify any fee at all. 

The audit trail. The FCA has been explicit that a button click does not constitute a signature, and that evidence of understanding — not just acceptance — is what compliance now looks like. That means timestamped records of what the client saw, how long they engaged with key sections, and what they confirmed. A PDF and an IP address is no longer sufficient. 

This is precisely the gap i agree is built to close — not just collecting agreement, but evidencing the journey that led to it.

How i agree Delivers Informed Consent and Fee Transparency for Motor Finance Claims Compliance

This turbulent landscape actually highlights a core problem: most clients never truly understood those car finance deals in the first place. That’s where  i agree comes in. Our platform was built to ensure no one signs anything they don’t understand. It’s like moving from simple e-signatures to a full “evidence of informed consent” system.

i agree Instead of just handing over dense contracts or letters and hoping for the best, you deliver agreements through an interactive, user-friendly experience. Our platform doesn’t just collect a signature – it provides a plain-English, spoken summary of key terms and highlights crucial points, before asking the client to confirm their consent. Each customer is guided through what the contract really means, whether it’s how your success fee works or what a Letter of Authority allows. The result? Clients who actually comprehend what they’re agreeing to, and who feel in control.

“Many consumers signed contracts but never understood how commissions worked... The info might have been there in legal terms, but no one explained it. This is the gap  i agree to close. Our platform gives clients a simple spoken summary of key terms… so people can make informed decisions before they agree to anything. If lenders or brokers had used a model like ours, there likely wouldn’t be a scandal in the first place.”

With i agree , you can effortlessly incorporate compliance checkpoints into your onboarding:

• Upfront disclaimers and alternatives: Easily inform clients about any free redress scheme or alternative routes within the consent process, as required by regulators. The client must acknowledge this information before proceeding.

• Transparent fees and terms: Present your fee structure, letters of authority, and terms of engagement in a clear, visual format. For example, before signing a Letter of Authority or retainer, the client might watch a 30-second video summary of what they’re authorizing and see a bullet list of key terms (e.g. “Our service fee is 30% of any compensation. You can cancel anytime at no cost.”). No more glossing over critical details – everything is understood and logged.

• Layered content for clarity: Break down complex legal jargon into bite-sized explanations. Clients can drill into definitions (what “discretionary commission” means, for instance) or replay a summary if needed. This ensures even those with no legal background grasp the essentials. i agree delivers information in multiple formats – text, audio, video – to suit different learning needs, which is crucial for truly informed consent.

• Active confirmation of understanding: After the client reviews the summary and key points, i agree prompts them to actively confirm (via a checkbox or verbal confirmation) that they understand and agree. This goes beyond a simple signature or tick-box. It captures explicit consent on each important clause, just as the SRA expects.

All of this happens seamlessly online, with a polished user experience. In fact, firms that have started using i agree for client onboarding see faster sign-ups because clients aren’t intimidated by walls of text. When you replace a 10-page terms document with an engaging walkthrough, clients respond positively. You’re not only staying compliant – you’re also providing a modern, customer-friendly journey.

Your Motor Finance Claims Compliance Audit Trail: Exportable Proof for Every Client Agreement

Understanding and agreement are only half the story – proving it is the other half. If regulators or ombudsmen ever question whether a client really knew what they were signing,  i agree has your back. Our platform automatically generates a detailed audit trail for each agreement:

• Every click, view, and consent is recorded: You get time-stamped logs showing exactly which sections a client viewed, what summaries were presented, and how they responded. For example, you’ll know if they replayed the fee explanation video or spent extra time on the cancellation terms page.

• Proof of comprehension: We track confirmations for each key clause (e.g., “Client checked a box confirming they understand the 30% fee” at 10:30 AM on Aug 10, 2025). This is concrete evidence of informed consent – far beyond an IP address on a signature. Regulators like the FCA and SRA now expect firms to show that the customer understood the terms, not just that they signed them. With i agree , you can demonstrate understanding with confidence.

• Exportable reports for regulators: Need to respond to an SRA inquiry or a complaint? In a few clicks you can export a PDF report of the entire customer agreement journey. It will detail the disclosures made (free scheme, rights to cancel, etc.), the client’s interactions, and the final consent. This level of documentation can make all the difference in an investigation or court case – showing that your firm went the extra mile to be transparent and fair.

By bolstering your audit trail,  i agree effectively serves as a compliance insurance policy. Should a dispute arise, you can prove that clear communication was given at every step. Remember, many complaints in financial services aren’t about breaking rules, but about customers feeling confused or blindsided. When you proactively ensure understanding, you prevent those complaints before they happen. In fact, clear communication has been shown to drastically reduce complaint volumes, since fewer clients feel the need to escalate issues.

Why CMCs and Law Firms Are Choosing i agree for Motor Finance Claims Compliance

Using i agree isn’t just about avoiding trouble – it’s about positively differentiating your firm in a crowded claims market. Here’s why forward-thinking CMCs and law firms are embracing this solution today:

Stay Ahead of FCA Consumer Duty and SRA Motor Finance Claims Regulation 

With Consumer Duty now in force, and SRA/FCA monitoring in overdrive, i agree ensures you meet (or exceed) every requirement by design. You’ll automatically inform clients of free alternatives, clarify fees, and secure explicit consent, ticking off regulators’ boxes without breaking a sweat. Compliance becomes baked into your process.

Build Client Trust Through Fee Transparency and Informed PCP Claims Onboarding 

Imagine the impression on a new client: instead of a hard-sell, you walk them through their PCP commission claim rights clearly, mentioning even the option to go it alone or wait for a free scheme. Being so upfront might seem counterintuitive, but it builds immense credibility. Clients are more likely to choose you – and stick with you – because they feel you’re honest and have nothing to hide. Plus, they’ll actually understand your letter of authority and terms, preventing confusion later.

Ultimately, adopting i agree sends a powerful signal: that your firm values ethical practices and client understanding above all. In a sector under the spotlight for aggressive tactics, this is a competitive advantage. You’ll attract clients and partners who seek quality and integrity – and you’ll sleep easier knowing your processes won’t trigger regulatory nightmares.

Get Started with Compliant Motor Finance Claims Onboarding 

In summary, the motor finance claims arena is at a crossroads. Consumer trust and regulator trust have to be earned through transparency. i agree helps you do exactly that – turning a compliance necessity into a competitive advantage. As the SRA/FCA joint warning shows, firms that prioritize informed consent and clear communication will thrive, while those that don’t risk being left behind or shut down. Now is the time to elevate your process.

Don’t just handle the PCP claims wave – lead it with ethics and excellence.  i agree is here to ensure every client can confidently say “I understand and I agree.” Equip your team with the tools to prove informed consent, streamline your onboarding, and stand out as a compliant, client-centric firm.

Get in touch or try a demo and see how  i agree can transform your motor finance claims process today. Let’s build trust into every agreement, together.