Millions of drivers who were mis-sold motor finance agreements should receive compensation this year, averaging around £829 per person, under plans by the regulator.
The Financial Conduct Authority (FCA) has set out its proposal for a redress scheme totalling £9.1bn, which will see fewer loan agreements eligible for compensation.
Some 12.1 million motor finance deals will meet the new criteria, down from initial estimates of 14.2 million.
The vast majority of new cars, and many second-hand ones, are bought with finance agreements.
