The UK's Financial Conduct Authority has announced a compensation scheme for up to 14 million motorists affected by unfair car loans from 2007 to 2024. While the average payout is expected to be around £700, the total compensation bill for lenders could reach as high as £9.7 billion. This news is significant as it provides relief to many who were misled by discretionary commission deals, highlighting the regulator's commitment to consumer protection and accountability in the finance sector.

In a significant development following the car finance scandal, lenders are set to pay out £700 per driver, amounting to a total of £8.2 billion in compensation. While this figure is lower than the previous estimates from the Financial Conduct Authority (FCA), it still represents a substantial effort to address the financial grievances of affected drivers. This payout is crucial as it not only provides financial relief to those impacted but also signals a commitment from lenders to rectify past mistakes, fostering trust in the financial system.