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Boss of City regulator accused of threatening consumer group over £9.1bn car loan scheme

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This story was selected and curated by our editorial team in the Banking category. Published on September 1, 2026 • Originally reported by Kalyeena Makortoff Banking correspondent. OMEGAZEPRIME provides independent news coverage and analysis for our readers. Stay informed with the latest developments.

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 Conduct Authority (FCA) chief executive, Nikhil Rathi, amounted to “an inappropriate intervention by a public official”.

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