Barclays will this month start offering compensation to tens of thousands of people who claim they were mis-sold car loans, with some of those who accept likely to see the money land in their account before Christmas.

Amid an ongoing legal battle over an industry-wide compensation scheme for victims of the UK’s car finance scandal, Barclays has become the first big UK lender to break cover and begin offering payouts to some customers who have complained.

Under the rules, “early settlement” offers of this kind must at least match what people would receive under the multibillion-pound scheme that is being challenged – which may help to address fears that banks might try to make “lowball” offers.

But consumers face a tricky decision as, depending on the outcome of the legal battle, they could end up with more money, less money or nothing at all if they decide to decline the offer and wait.

In March this year, the Financial Conduct Authority (FCA) announced a £9.1bn compensation scheme for the millions of…