The UK’s financial watchdog has been given a clearer path for its £9.1 billion motor finance compensation scheme after the main industry body joined major lenders in backing out of any legal challenge. The Finance and Leasing Association (FLA) said it had “concerns” about the programme but that it was choosing not to raise a challenge. It follows major lenders including Santander , Barclays and Lloyds also accepting the Financial Conduct Authority’s (FCA) scheme despite raising concerns that the level of redress is disproportionate to those who suffered harm. The FLA, which represents the UK’s motor finance firms, said it had considered how the regulator’s scheme would affect its members, their customers and the wider lending market given that it was “unprecedented in scale and scope, and the impact on the UK economy will be significant”.…