Legal filings reveal that Nikhil Rathi, chief executive of the Financial Conduct Authority, allegedly made threatening comments to Consumer Voice during a video call on 27 April. According to the documents, Rathi warned that the FCA would be “unable to collaborate” with the consumer group if it pursued legal challenges against the proposed motor finance redress scheme, with implications that such action would result in hostile engagement and negative press briefings. The call occurred just hours before the deadline for filing legal challenges.
Consumer Voice had previously been treated as a trusted expert body by the FCA, but the organization decided to challenge the compensation scheme on grounds that it undercompensates affected consumers. The group argues the scheme offers average payouts of £830 per mis-sold loan and prioritizes the interests of major lenders over those of drivers who were overcharged between 2007 and 2024. Rathi allegedly characterized the potential legal challenge as the biggest threat to the scheme and warned that compensation timelines would be jeopardized if the group proceeded.
The FCA subsequently disputed the characterization of the conversation, stating that officials needed to explain the implications for consumers and defend the scheme as the best approach to delivering compensation. The regulator added that it was unaware of parallel challenges being mounted by three specialist lenders—Volkswagen Financial Services, Mercedes-Benz Financial Services, and Crédit Agricole Auto Finance—until after the call took place.
Consumer Voice, founded in 2023 by former Which? staff members, has continued to challenge the scheme’s terms. The FCA has responded by attempting to discredit the group, alleging that its co-founders have not been transparent about funding and potential conflicts of interest, given relationships with law firms involved in claims management. Consumer Voice maintains confidence in its legal position and commitment to advocating for millions of affected consumers.
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