Path clears for city watchdog to proceed with £9.1bn car finance payout scheme

Payouts were due on about 12.1 million mis-sold deals from an array of lenders at an average of £829 each, the Financial Conduct Authority said last month (Gareth Fuller/PA) - (PA Archive)

The UK’s financial watchdog has been given a clearer path for its £9.1 billion motor finance compensation scheme after the main industry body joined major lenders in backing out of any legal challenge.

The Finance and Leasing Association (FLA) said it had “concerns” about the programme but that it was choosing not to raise a challenge.