Boss of City regulator accused of threatening consumer group over £9.1bn car loan scheme
FCA chief, Nikhil Rathi, warned of ‘adverse consequences’ if challenge made to settlement, court filings allege The boss of the UK’s financial regulator is accused of threatening a consumer group with “adverse consequences” if it blocked a £9.1bn compensation scheme meant to settle the motor finance scandal . Legal documents reviewed by the Guardian said the alleged comments by the Financial…
The Financial Conduct Authority (FCA) chief, Nikhil Rathi, has been accused of threatening a consumer group with "adverse consequences" if they blocked a £9.1bn compensation scheme meant to settle the motor finance scandal. The alleged comments by Rathi took place during a Microsoft Teams call with the directors of Consumer Voice (CV) on 27 April, hours before the deadline to file legal challenges against the FCA’s proposed redress scheme for those mis-sold car loans.
The Guardian Business reports that Rathi warned that the City regulator would be "unable to collaborate" with Consumer Voice if it took legal action, suggesting adverse consequences for CV’s future engagement with the FCA and adverse press briefings against it.
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