City regulator urges judges to dismiss larger payout claims in car loans scandal

FCA clashes with consumer group pushing for bigger compensation, alleging lack of transparency and conflict of interest

The City regulator is trying to get the only consumer group arguing for higher motor finance scandal payouts thrown out of court, alleging that its co-founders have not been transparent about their funding and potential conflicts of interest.

The accusations, laid out in legal filings on Wednesday, are the latest controversy in the long-running saga surrounding mis-sold car loans, with fears of large payouts having resulted in heavy lobbying by banks and a controversial intervention by the chancellor, Rachel Reeves.
Continue reading...