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Story summary
- City minister Lucy Rigby faced criticism for dismissing concerns about a £2 billion tax loophole benefiting banks in the car loans scandal.
- The Treasury committee urged intervention, but Rigby said Barclays and Lloyds could exploit it.
- Lenders' motor finance divisions are labeled non-bank entities, enabling the loophole's use.
- Taxpayers could face £2 billion in costs over two years as the Financial Conduct Authority prepares next steps.
