Industry figures say unknown compensation bill makes it ‘difficult to operate’ owing to fears of ‘retrospection’

The car finance commission scandal is causing concern across the City about the UK’s approach to rules and regulation, with bosses and investors saying that the uncertainty is making it “difficult to operate”.

Lenders caught up in the scandal could be facing a compensation bill of up to £30bn, according to some estimates. But even companies that have no involvement in the alleged mis-selling of motor finance say it appears the authorities are allowing rules to be applied retrospectively.