Officials have raided homes and businesses and seized laptops, mobile phones and paperwork in a crackdown on claims companies linked to spam text messages about the car finance mis-selling scandal. On Wednesday, the UK’s Information Commissioner’s Office (ICO) carried out search warrants at five companies in London, Liverpool, Bolton, Burnley and Swansea.
More than 12m complaints about nuisance marketing text messages have been submitted by the public since September 2025 as claims management companies (CMCs) and other firms attempt to secure a share of the billions of pounds in compensation expected to be paid to motorists who were mis-sold car loans.
Why has the ICO taken action?
The ICO said it acted after complaints about unwanted marketing linked to motor finance claims continued to rise. The search warrants were part of a clampdown on nuisance firms that officials say have been responsible for sending huge volumes of spam messages.
Andy Curry, the 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.”
He added that this week’s raids
“send a clear message to the claims management sector: comply with the law or expect to hear from us”.
It is understood that the items seized included electronic devices such as laptops and mobile phones, plus a large number of documents.
How many texts are the companies believed to have sent?
The companies linked to the searches are subject to continuing investigations and are believed to be responsible for sending a combined 170m texts to members of the public between September 2025 and May this year.
The ICO is working with the Financial Conduct Authority (FCA), the Advertising Standards Authority and the Solicitors Regulation Authority to tackle poor practices relating to motor finance claims by some CMCs, law firms and lead generation companies.
What is the background to the car finance scandal?
In March the FCA announced a for the millions of victims of the scandal. However, the regulator was later because of legal challenges. The FCA had expected it would start paying out £829 on average this year to those affected by the scandal, in which drivers were overcharged for loans as a result of commission payments between lenders and car dealers between 2007 and 2024.
But a court ordered the regulator to suspend parts of the scheme until a hearing in December or February next year.
How is the wider crackdown affecting firms?
The searches represent an escalation of the crackdown on rogue CMCs and other businesses. As a result of the FCA’s work, more than 1,200 misleading adverts have been removed or amended since January 2024.
Some firms face enforcement investigations, while others have had to reduce their
“unreasonable”fees or allow consumers to walk away from contracts free of charge.
The ICO has the power to apply to the courts for a warrant to search premises as part of investigations under the Privacy and Electronic Communications Regulations, where evidence may be seized. This can include mobile phones, laptops and sim farms: collections of devices that house hundreds or thousands of mobile phone sim cards.
What are regulators telling consumers?
The FCA has said there is no need to use a CMC or law firm because people can complain for free using a on its website. This week it to direct people to the letter. It will run across TV, radio, print, billboards and social media until 6 September.
Key Facts
- Laptops, mobile phones and documents were seized after ICO search warrants at five companies in London, Liverpool, Bolton, Burnley and Swansea.
- More than 12m complaints about nuisance marketing text messages have been made since September 2025.
- The companies are believed to have sent a combined 170m texts between September 2025 and May this year.
- The FCA had expected the average payout to victims to be £829 this year, but parts of the scheme were suspended after legal challenges.
- More than 1,200 misleading adverts have been removed or amended since January 2024.
