FCA faces battle over £1m ad campaign rejecting car loan claims firms

City watchdog aims to tell drivers they will not need to use companies to apply for share of 18bn compensation scheme

The City regulator is facing a battle with claims companies over a 1m advertising campaign designed to discourage drivers from using their services to get payouts over the car loan scandal.

The Financial Conduct Authority (FCA) announced this month that it would roll out a series of online and radio adverts, telling drivers they will not need to use claims management companies (CMCs) or law firms to apply for their share of the regulator's proposed 18bn compensation scheme.