The chief executive of the Financial Conduct Authority, Nikhil Rathi, has been accused of threatening a consumer group with "adverse consequences" if it challenged the regulator's £9.1bn compensation scheme for mis-sold car loans. Court filings reviewed by the Guardian allege Rathi made the comments to directors of Consumer Voice during a Microsoft Teams call on 27 April, just hours before the deadline for legal challenges, warning the FCA would be "unable to collaborate" with the group and hinting at hostile press briefings if it went ahead. The claims add fresh controversy to the long-running motor finance scandal, which has already seen political intervention from the former chancellor Rachel Reeves amid heavy lobbying from banks worried about the scale of potential payouts.

The filings, lodged at the UK's upper tribunal, say the FCA had previously treated Consumer Voice as a "trusted expert" body but turned on it once it pursued a legal challenge, and that Rathi did not disclose that three specialist lenders were also considering challenges. Consumer Voice, founded by former Which? staff in 2023, argues the scheme's average payout of £830 per mis-sold loan is too low and favours lenders' interests over consumers'. The FCA has since sought to have the group's claim thrown out, alleging undisclosed conflicts of interest via its ties to law firm Courmacs Legal, a claim Consumer Voice disputes.