UK FCA Dear CEO Letter and joint statement with SRA on duplicate motor finance representation

The UK Financial Conduct Authority has issued a Dear CEO Letter to claims management firms and law firms regarding motor finance complaints, specifically where more than one professional representative (PR) is appointed for the same complaint. The letter reiterates the position set out in the previous Dear CEO Letter issued in October 2025.

The FCA notes that some customers have appointed multiple representatives for the same complaint without informing them, resulting in a high volume of complaints where it is unclear who is acting for the complainant. With the current pause on motor finance commission complaints ending in May, the FCA intends to publish its final rules by the end of March. To avoid delay in the handling of existing complaints, the FCA expects lenders to identify instances of multiple representation, assess the facts of each case, seek legal advice where appropriate and take the following steps:

• Contact all PRs linked to the complaint to determine who the sole representative is and copy the customer on all correspondence.
• Provide sufficient information to the PRs and customer so they can reach a clear view on who the sole representative is.
• Support constructive engagement between PRs and help customers understand the implications of appointing more than one representative, including any potential termination fees.
• Inform all parties once the sole representative is confirmed and close duplicate complaints.
• Where, after reasonable efforts, the sole representative cannot be identified, ask the customer what they wish to do.
• Ensure compliance with applicable legal and data protection requirements.

The FCA will monitor how firms deal with this issue and may intervene where it identifies poor practice or unnecessary delay. In parallel, the FCA and the Solicitors Regulation Authority (SRA) have issued a joint statement on the same issue. The regulators expect PRs to ensure robust checks are in place to avoid overlap and recurrence of duplication, resolve existing duplicate claims urgently and ensure that any termination fees charged are fair and justifiable. The FCA will continue to monitor the conduct of PRs, and act where it identifies poor practices.

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