Drivers may get compensation offers before car finance saga ends

Drivers may be offered compensation from lenders ahead of the next legal battle in the car finance mis-selling saga.

Regulator the Financial Conduct Authority (FCA) said it would welcome lenders making settlement offers as long as customers were not given a worse deal than under its proposed central scheme.

That scheme is facing a legal challenge, to be heard in February, with resulting compensation unlikely to be paid until late next year.

But Barclays has confirmed it will make early compensation offers from now, with others expected to follow suit.

The FCA said it would still only expect a minority of claimants to be made early offers, with most having to wait for the outcome of next year's court case.