The United Kingdom's Supreme Court on Friday overturned a landmark ruling on car finance commissions after an appeal by two lenders in a judgment that is set to ease the fears of banks about the extent of a redress scheme.

The Supreme Court is set to issue a landmark ruling on whether millions of drivers were mis-sold car loans by banks and motor dealers. Britain’s highest court will deliver its judgment at 4.35pm today, with analysts suggesting a ruling against the banks could trigger an estimated £44bn compensation payout for drivers.

British banks and lenders have been spared a huge bill as the Supreme Court has overturned a ruling that could have meant millions of motorists were due compensation for mis-sold car finance.