By Legal Futures Associate Valid8 [1]
Duplicate representation in motor finance commission claims has been an area of attention for regulators. The Financial Conduct Authority (FCA) and the Solicitors Regulation Authority (SRA) have highlighted that some consumers have agreements with more than one representative for the same claim.
While often unintentional, duplicate representation can create challenges for both consumers and firms, including:
- Confusion over which firm is authorised to act
- Delays in progressing claims
- Consumers entering agreements without fully understanding them
- Potential termination fees if contracts overlap
The regulators emphasise transparency and fairness. They note that contractual clauses stating a new agreement “supersedes” previous instructions cannot be relied upon unless the terms were clearly explained. Termination fees may also be inappropriate where authority or onboarding checks were insufficient.
Firms are expected to take steps to ensure consumers understand what they are signing and to act in their best interests. Cooperation between representatives is encouraged where multiple agreements exist.
Practical support for firms
To help manage these situations, some firms use verification tools as part of their onboarding processes. Valid8 IP offers EXPIN, a solution which searches against the largest database of existing PCP credit searches available to:
- Identify potential duplicate claims activity
- Flag prior representation markers
- Match claim and vehicle data
- Maintain an auditable record of verification checks
EXPIN is a supportive tool — not mandatory — and does not replace professional judgement or regulatory responsibilities. It provides additional information that firms can use to help confirm authority, manage duplication risks, and maintain documentation.
Why this matters
Duplicate agreements can create unnecessary complexity, but addressing them effectively benefits both consumers and firms. By focusing on clarity, transparency, and informed agreements, firms can reduce confusion and support fair outcomes.
Verification tools like EXPIN offer a way to support these processes, providing additional insight and record-keeping. Combined with clear communication and careful handling of agreements, they can help firms demonstrate that appropriate checks have been carried out, in line with FCA and SRA guidance.
Ultimately, the regulators’ guidance underscores a simple principle: clear agreements, transparent processes, and fair treatment are central to managing motor finance commission claims responsibly.
Further information on the services provided is available at valid8.co.uk [2].