The UK's Information Commissioner's Office (ICO) has executed warrants at homes and businesses linked to five companies in London, Liverpool, Bolton, Burnley and Swansea, as part of a crackdown on firms sending nuisance marketing texts about car finance compensation.
Officials seized laptops, phones and paperwork during the raids, targeting claims management companies (CMCs) and other firms believed to be responsible for sending a combined 170 million text messages to the public between September 2025 and May 2026.
Millions of Complaints and Massive Payouts
More than 12 million complaints about nuisance marketing texts have been submitted by the public since September 2025, as firms attempt to grab a share of £829 compensation payouts set to be paid to motorists who were mis-sold car loans.
The ICO's investigations are ongoing, with the companies suspected of breaching the Privacy and Electronic Communications Regulations (PECR), which govern direct marketing.
Regulator Warnings and Joint Taskforce
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."
He added: "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."
FCA's Role in Protecting Consumers
Alison Walters, Director of Consumer Finance at the Financial Conduct Authority (FCA), said: "Firms that misuse people's personal information or use aggressive marketing can cause serious harm and damage trust."
She continued: "Through our joint taskforce, we are sharing information and working together to protect consumers and improve standards across the sector. Where we find firms breaking the rules, we will not hesitate to act alongside our regulatory partners."
Compliance Required Under PECR
The ICO is urging all companies in the claims management sector, including lead generators and law firms responsible for instigating direct marketing, to ensure they comply with PECR.
The data protection regulator has the power to apply to court for a warrant to search premises as part of investigations under PECR, where evidence such as mobile phones, laptops or sim farms may be seized.
This crackdown is part of a broader effort to tackle the surge in unsolicited marketing related to car finance claims, which has become a significant consumer nuisance.
