Millions of drivers who were mis-sold car finance agreements should receive compensation this year, under plans by the regulator.
Average payments of about £829 are expected under the rules published by the Financial Conduct Authority (FCA).
However, there are legal challenges to the scheme which could delay payouts.
The vast majority of new cars, and many second-hand ones, are bought with finance agreements. Customers pay an initial deposit to secure the vehicle, then a monthly fee with interest.
Compensation could be given to many of those who took out a car loan between April 2007 and November 2024.
