Up to 14m car loan scandal victims in line for average £700 payout, City regulator announces

City regulator unveils compensation scheme for motorists who bought cars via discretionary commission deals from 2007 to 2024

Victims of the UK's car finance scandal are likely to receive compensation payouts averaging 700 resulting from 14m unfair loans, the City regulator said on Tuesday.

The payouts would be less than previously expected, but the Financial Conduct Authority (FCA) said lenders could be landed with an 8.2bn compensation bill, which could go as high as 9.7bn.