The motor finance mis-selling scandal has pushed the Financial Conduct Authority’s spending on external public relations agencies beyond half a million pounds since early 2024.
The FCA confirmed the expenditure following a Freedom of Information request by City AM, linking the rise directly to its communications work around the car finance controversy.
The scandal centres on so-called secret car deals, where banks including Lloyds (LLOY), Barclays (BARC), and Santander left consumers unaware of hidden commission arrangements between lenders and dealers.
The watchdog said its work with outside agencies forms a core part of delivering on its broader strategy, particularly around consumer awareness campaigns.
“Our work with public relations and communications agencies helps us to deliver on our strategy,” the FCA said, noting it also operates its own dedicated internal communications unit.
“We help consumers to navigate their financial lives by informing them how they can use our firm checker tool to find out if financial services firms are authorised or by raising awareness they may be owed car finance compensation and how to claim,” the regulator added.
PR spending peaked sharply in the fourth quarter of 2024, reaching £180,000, which was nearly double the second highest quarter of £98,000 recorded in the third quarter of 2025.
That spike coincided with the Court of Appeal ruling in October 2024 in favour of consumers across three landmark cases, which prompted the FCA to dramatically widen its review of all forms of car finance commissions.
The FCA has waged an active communications campaign against claims management firms, warning consumers they do not need to pay third parties to receive compensation they may be owed.
In September, the regulator hired a team of influencers and ran campaigns across radio and online advertising to spread that message directly to affected customers.
That campaign followed the Supreme Court’s August ruling, which left open the possibility of an industry-wide redress scheme and triggered the second-largest spike in the FCA’s PR expenditure.
The FCA published the final details of its redress programme earlier in 2026, though it faced backlash from both industry groups and consumers who accused the regulator of misinterpreting the Supreme Court’s ruling.
The regulator, which is funded independently of government through periodic fees on authorised firms and one-off levies on firms seeking authorisation, has faced mounting pressure to manage public expectations carefully throughout the process.
Ongoing campaigns beyond motor finance have also contributed to the overall PR spend, including the FCA’s Investsmart project, which targets retail investors to warn them against get rich quick schemes and pump-and-dump scams.