FirstRand to Exit UK as Car-Loan Charges Hit £750 Million

FirstRand Ltd. plans to exit its UK motor-finance business after saying it will raise a provision to cover compensation for clients over claims they were missold car loans in the UK to £750 million ($994 million).

The South African lender has increased the amount by £510 million after the UK’s Financial Conduct Authority published its final redress plan for the saga at the end of March, it said Tuesday. Collectively, the industry has to pay about £9.1 billion overall to consumers, with 12.1 million loans eligible.