Victims robbed of £4bn in ‘insulting’ car loan redress scheme, say claims firms

Financial Conduct Authority defends interest rate of 2.09% as critics describe proposals as hypocritical'

Victims of the car loans scandal could miss out on more than 4bn in compensation if the City regulator ploughs ahead with plans for an insulting" interest rate in its redress scheme, consumer groups and claims firms say.

The Financial Conduct Authority (FCA) has been accused of offering a reduced rate of interest which will be added to compensation from banks for borrowers caught up in the car loan commissions scandal.