In a significant development following the car finance scandal, lenders are set to pay out £700 per claim, amounting to a total of £8.2 billion in compensation. While this figure is lower than the previous estimates by the FCA, it still represents a substantial effort to address the financial grievances of affected consumers. This payout is crucial as it aims to restore trust in the financial system and provide relief to those who were misled.

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, with average payouts expected to be around £700. While the compensation amounts are lower than initially anticipated, the total bill for lenders could reach as high as £9.7 billion. This initiative is significant as it addresses long-standing grievances of consumers who were misled in their car financing deals, providing them with some financial relief.

In a significant development, up to 14.2 million drivers may be eligible for an average payout of £700 each due to a car finance mis-selling scandal, as announced by the financial services regulator. This compensation is crucial as it addresses the financial injustices faced by many consumers, providing them with much-needed relief and restoring trust in the financial system.