Lenders no longer face the prospect of having to pay £30bn to £40bn to aggrieved car buyers, but the industry still faces hefty payouts.

Banks could still face claims for compensation for motor finance commissions, but the extent of the total bill facing lenders is likely to now be significantly reduced.

A group of lenders won a partial reprieve in a pivotal UK car finance case, after the country’s top court sought to rein in the spiraling saga that’s set to cost banks billions in consumer payouts.