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

Britain's highest court Friday largely overturned a lower court's ruling that certain car finance agreements were unlawful, a decision likely to bring a sigh of relief among lenders and limit the scale of compensation payments.

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.