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FCA chief accused of threatening consumer group over £9.1bn car loan deal
Court filings described a warning that the FCA would be unable to collaborate with Consumer Voice if it pursued legal action against the proposed redress scheme.
The UK Financial Conduct Authority chief executive Nikhil Rathi is accused of warning a consumer group of “adverse consequences” if it challenged an FCA plan to deliver compensation under a £9.1 billion motor finance redress scheme, according to legal documents reviewed by The Guardian Business.
The allegation centers on a Microsoft Teams call on April 27, hours before a deadline to file legal challenges to the FCA’s proposed redress, the report said.
The filings claim Rathi said the regulator would be “unable to collaborate” with Consumer Voice if it took legal action, and that it could face adverse impacts on future engagement with the FCA and negative media coverage.
The Guardian Business also said the documents allege Rathi told Consumer Voice that a potential challenge was the “biggest risk” to the scheme, and that plans to pay millions of victims by this Christmas would fail if directors went ahead, adding to controversy in the ongoing mis-sold car loans saga.