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Car buyers could be owed a share of £8billion under a compensation scheme proposed by the City watchdog.

The Financial Conduct Authority (FCA) says that the cash could be paid to 14 million people over unfair financial agreements.

It is expected that each person owed would get around £700 per agreement.

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The industry-wide compensation scheme comes after evidence that some motor dealers did not tell buyers that they were earning commission from lenders on some car finance deals they sold.

The FCA stepped in after a Supreme Court ruling provided clarity on a separate issue that could have entitled even more people to compensation.

The expected payout is less than the £9billion to £18billion it had originally estima

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