Handling of housing disrepair in spotlight as regulator reviews claims management market

The FCA said the review would look at the root causes of poor practices across the market, citing aggressive marketing, misleading advertising and unfair exit fees.

Other concerns include consumers being signed up without their consent - without clear, upfront explanations of the implications of signing up or ticking a box, for example on social media adverts - or by multiple representatives, "potentially causing confusion and delaying compensation", the regulator said.

The FCA added that while the approach to motor finance claims by some CMCs and law firms had put these issues “into sharper focus”, it is also concerned about the handling of other claims, such as housing disrepair.

The regulator said that, working in close collaboration with the Solicitors Regulation Authority (SRA) and other regulatory partners, it would use its review and supervisory and enforcement powers to rigorously examine:  

• Whether consumers receive fair value, including competition on price and quality, and whether existing price caps are still fit for purpose, especially where free-to-use redress mechanisms exist.
• Financial incentives, including fee structures, funding and insurance arrangements, and whether these create conflicts of interest and/or lead to poor conduct and outcomes.
• Whether the full end-to-end consumer journey, including lead generation, marketing and advertising, delivers good consumer outcomes.
• Whether different approaches across different regulatory regimes affects firm behaviour and if some firms are failing to secure the appropriate permissions.  

It said it expects “full, prompt and open cooperation from all parties” it engages in the review, and promised, with its regulatory and enforcement partners, to take robust action if this is not forthcoming.  

The FAC added that it would make recommendations to Government, or relevant bodies, where its believes legislative change is needed.

These may include whether CMCs and law firms should be subject to stronger compensation mechanisms if they cause harm.

The FCA will publish further information on the review by mid-May.  

Alison Walters, director of consumer finance, said: “CMCs and law firms can help consumers secure compensation they are owed. But too often consumers are being let down, eroding trust in firms that should be supporting them and damaging the economy.

“This review will give us a clear picture of how the market is working and galvanise the further actions that are needed.”

Aileen Armstrong, SRA executive director, strategy, innovation and external affairs, said: “When they work well, claims management services can benefit consumers. But we are concerned about poor practices and behaviours that are not looking after consumers’ best interest.  

“We will work closely with the FCA on this important review. This is a cross-sectoral problem that requires joined-up solutions.”

In December 2025 the Ministry of Housing, Communities and Local Government and the Ministry of Justice issued a call for evidence on the role and impact of claims management activity in housing disrepair claims brought in the County Court.

The two ministries said they would "use this evidence to determine if any claims management activity conducted by claims management companies and solicitors is causing issues in the process of redress for housing disrepair, how big these issues may be and what form they take, and whether government action is necessary".