This article is for general information only. It is not financial advice and does not recommend a specific lender or product.

The FCA regularly publishes warnings about fraudulent firms and dishonest claims-management companies targeting UK consumers. Knowing the signs can help you avoid a costly mistake.

What to look out for

Consumer-finance scams and bogus claims firms tend to share a set of recurring patterns. The FCA's published guidance points to the following warning signs:

  • Unsolicited contact. A call, text, email or social-media message you did not ask for, offering a loan, investment, or help reclaiming money. Legitimate regulated firms rarely approach consumers cold.
  • Requests for an upfront fee. Being asked to pay a fee before receiving a loan is a strong indicator of a scam. Most authorised lenders do not require payment upfront. Some regulated brokers do charge an arrangement fee disclosed in advance; if you are unsure whether a fee is legitimate, check the firm's FCA permissions before paying anything.
  • Pressure to act fast. Urgency tactics, 'this offer expires today', 'your claim window is closing', are designed to stop you thinking clearly. Genuine firms allow time to consider.
  • Unverifiable contact details. The firm cannot provide a verifiable address, a working FCA registration number, or its details do not match the FCA Register entry. Be aware that scammers sometimes quote a real FCA registration number belonging to a different, legitimate firm. Always call the number listed on the FCA Register for that firm, not the number provided by the contact.
  • Guarantees of approval or payout. No regulated lender can guarantee loan approval. No legitimate claims firm can guarantee a payout. These promises are a red flag.
  • Cloned firm websites. Scammers increasingly build websites that mimic legitimate regulated firms, copying logos, registration numbers and even staff names. Always navigate directly to the FCA Register to verify contact details rather than relying on links or documents provided by the firm.

Claims-management firms (CMCs) that approach you about financial mis-selling are subject to FCA regulation. The current live area of CMC activity is car-finance commission. The FCA's review of historic car-finance commission arrangements is ongoing; you can find the latest information, including which agreements may be in scope, on the FCA's car-finance review page. If a CMC contacts you without being asked, asks for large upfront fees, or puts pressure on you to sign quickly, treat that as a warning sign. Note that the PPI complaints deadline passed in August 2019, so any firm still cold-calling about PPI should be treated with particular scepticism.

Why it matters

According to Action Fraud, consumers in the UK lost over £2.3 billion to fraud in the year to March 2024. Financial fraud is among the most commonly reported categories. The FCA's ScamSmart campaign warns that scammers are increasingly sophisticated, using official-looking documents to appear credible.

How to check whether a firm is legitimate

Before handing over any personal details or money, a useful first step is to check the FCA Register at register.fca.org.uk. Authorised firms are listed there with their permissions and contact details. If the firm's number does not appear, or the details do not match what you have been given, do not proceed.

The FCA also maintains a Warning List of known unauthorised firms and individuals. You can search it at fca.org.uk/consumers/warning-list.

If you want to report a suspicious firm, the FCA's consumer helpline is 0800 111 6768. Action Fraud can also be contacted on 0300 123 2040.

What to read next

For a broader look at getting trustworthy financial help and spotting the difference between regulated and unregulated firms, see the Jolly Good Guide to getting financial advice.

Sources

Related guides