FCA Chief Accused of Threatening Consumer Group Over Loan Scheme

The chief executive of the Financial Conduct Authority, Nikhil Rathi, is accused of threatening the advocacy group Consumer Voice during a Microsoft Teams call on April 27. Legal filings allege Rathi warned the group of adverse consequences and a loss of future collaboration if it pursued legal challenges against a 9.1 billion pound compensation scheme for mis-sold car loans.

Rathi reportedly told the group that the legal challenge represented the biggest risk to the scheme and could delay payments to victims past Christmas. Consumer Voice, supported by Courmacs Legal, is challenging the redress scheme on the grounds that it provides insufficient payouts to affected drivers.

The Financial Conduct Authority has sought to have the claim dismissed, alleging that Consumer Voice lacks transparency regarding its funding and possesses commercial incentives. The regulator denies the characterization of the call, stating it was necessary to explain the implications for consumers and that it would defend the scheme robustly.