The chancellor, Rachel Reeves, has denied that the Labour government is working against consumer interests despite urging the supreme court to avoid handing a “windfall” to borrowers harmed in the motor finance commission scandal.
Reeves has been under pressure from lenders and lobby groups, who have predicted that a huge compensation bill – expected to rival the payment protection insurance (PPI) mis-selling saga at £44bn – could disrupt the motor finance market. They claim it could force some lenders to shut up shop, offer fewer loans or hike interest rates to cover their costs.
