Millions of customers affected by the car finance mis-selling scandal could receive less compensation than previously suggested, the FCA has warned.
The Financial Conduct Authority has said as many as 14 million motor finance agreements between April 2007 and November 2024 could result in a payout.
But while the regulator had previously estimated victims could receive just under £950 per deal, it now predicts the average payment per deal will be £700.
The figure would still result in lenders paying out £8.2billion in compensation, the BBC reports.
The FCA estimates almost half (44%) of all motor finance agreements since 2007 are impacted by the scandal, which involves commission arrangements between lenders and dealers, unfair contracts and misinformation given to buyers.
Nikhil Rathi, chief executive of the FCA, said: "It's time their customers get fair compensation.
"We recognise that there will be a wide range of views on the scheme, its scope, timeframe and how compensation is calculated. On such a complex issue, not everyone will get everything they would like."
Read more on the BBC website.