This is from the National Council for Voluntary Organisation’s website, about the Charity Commission:
“The Commission investigates accusations of wrongdoing. The vast majority of errors are simple mistakes, and help and advice from the Commission to trustees is enough to rectify things. However, in some rare cases, a statutory inquiry is necessary to find out what has gone wrong and how it can be fixed.
If a serious problem is uncovered, the Commission has powers to:
restrict transactions a charity may enter into
appoint additional trustees
‘freeze’ a charity’s bank account
suspend or remove a trustee
appoint an interim manager
make a referral for investigation to the police and other law enforcement agencies.”
The Charity Commission has no powers of its own to prosecute any charity which is perceived to have done something illegal. It can only refer matters to the police.
It has a much wider role of advising charities about how they should conduct themselves. So it’s rather unfair to describe it as toothless.
Once again, Motability, which was the subject of the OP, is not a charity.
It’s an organisation which has charitable status for tax purposes. There’s a big difference.