Britain's data watchdog has launched a major crackdown on companies suspected of bombarding the public with nuisance car finance mis-selling claims texts, raiding properties linked to five firms across the UK.
The Information Commissioner’s Office (ICO) executed search warrants on Wednesday at residential and business premises in Bolton, Burnley, Liverpool, London, and Swansea.
The enforcement action follows more than 12 million complaints about unsolicited motor finance texts since September last year, with the ICO receiving up to 100,000 reports daily.
The unnamed companies under investigation are believed to be responsible for dispatching a staggering 170 million messages between September 2025 and May this year.
The ICO is collaborating with the Financial Conduct Authority, Advertising Standards Authority, and the Solicitors Regulation Authority to tackle the poor handling of car finance mis-selling claims by certain lead generators, claims management companies, and law firms.
Andy Curry, head of investigations at the ICO, said: “People are fed up with being bombarded by unwanted calls, texts and emails about car finance claims, and we’re taking action.
“This week’s searches send a clear message to the claims management sector: comply with the law or expect to hear from us.
“We are working closely with our taskforce partners to make sure people are properly informed and protected and we will not hesitate to take further action where we find evidence of wrongdoing.”
The FCA has been working on a scheme to compensate millions of people who took out motor finance deals with hidden or unfair commission, although the redress scheme has recently been put on hold because of legal challenges.
Regulators have been looking to stamp out poor claims handling and marketing practices in the mis-selling saga, while also warning about fraud attempts.
More than 1,220 misleading adverts have so far been removed or changed since January 2024 after action by the FCA.
The regulator has also secured so-called voluntary requirements with 12 firms ensuring they agree to stop or change their marketing activities, and other action has also been taken to help protect consumers.
Alison Walters, director of consumer finance at the FCA, said: “Firms that misuse people’s personal information or use aggressive marketing can cause serious harm and damage trust.
“Through our joint taskforce, we are sharing information and working together to protect consumers and improve standards across the sector.”
People who receive unwanted calls or texts about car finance claims can register with the Telephone Preference Service and report unsolicited marketing via the ICO website or by forwarding text messages to 7726.
