FCA chief allegedly warned consumer group of retaliation over £9.1bn car loan redress plan

According to court papers, FCA chief executive Nikhil Rathi warned Consumer Voice that the regulator would cease collaboration and potentially issue hostile briefings if the consumer body pursued a legal objection to the £9.1bn motor-finance redress scheme. The alleged exchange occurred in a Microsoft Teams meeting on 27 April, moments before the deadline for challenges. The filings label the comments as an improper intervention by a public official and note that the FCA had previously treated Consumer Voice as a trusted expert body.

Consumer Voice, created by Nikki Stopford and Alex Neill in 2023, contends the scheme offers average payouts of £830 per mis-sold loan and seeks higher compensation for affected drivers. The FCA counters that Consumer Voice has not been fully transparent about its funding and relationships with claims-management firms such as Courmacs Legal, which provides pro bono support but stands to earn a share of settlements. The regulator says it will defend the scheme robustly and continue engaging with the consumer group despite the disputed conversation.