FCA Head Says Car Loan Claims to Be Lower Than PPI: Sunday Times

Banks will pay out “substantially less” compensation for hidden commission in car finance loans than they did during the Payment Protection Insurance scandal, according to Nikhil Rathi, chief executive officer of Britain’s Financial Conduct Authority.

“We would expect any outcome — if we are to move forward with an industrywide compensation scheme — to be substantially less than the PPI episode,” Rathi said in an interview with the Sunday Times. Compensation for PPI claims, where lenders sold insurance borrowers didn’t need, cost the banks at least £35 billion ($46.5 billion).

Rathi’s comments come after a Supreme Court judgment ...