UK banks are warning the Treasury about a potential consumer credit crisis after a court ruled that certain car finance commissions were unlawful, leaving the sector at risk of costly compensation claims, possibly up to £16 billion. The Financial Conduct Authority (FCA) is considering freezing complaints further to manage the expected surge. The ruling affects commissions paid by lenders to brokers or car dealers and could lead to broad redress, similar to the £50 billion PPI scandal. Major players like Close Brothers have paused lending, and others, including Santander, are reassessing impacts.