{"id":14647,"date":"2026-01-22T11:32:27","date_gmt":"2026-01-22T11:32:27","guid":{"rendered":"https:\/\/microvibenews.com\/?p=14647"},"modified":"2026-01-22T11:32:27","modified_gmt":"2026-01-22T11:32:27","slug":"firstrands-uk-future-hinges-on-motor-finance-decision-ceo-says","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=14647","title":{"rendered":"FirstRand\u2019s UK future hinges on motor finance decision, CEO says"},"content":{"rendered":"<p><\/p>\n<div id=\"textFreeArticle\">\n<p>FirstRand said the fate of its UK unit remains in the balance as it awaits a final ruling over the amount of compensation banks have to pay to consumers over claims they were missold car loans.<\/p>\n<p>\u201cWe haven\u2019t made the decision, because the Financial Conduct Authority ultimately has to come with a final redress,\u201d chief executive officer Mary Vilakazi said in an interview from Davos. \u201cIf a number of the substantive issues that we raised are not addressed, the amount that we are looking at is such that our business going forward is not going to have the capital resources that are needed to support lending in motors.\u201d<\/p>\n<p>Read:<br \/>FirstRand flags possible extra UK provision amid redress scheme dispute<br \/>FirstRand questions fairness of UK motor finance redress scheme<br \/>FirstRand sets aside more for UK loan probe, still delivers record profit<br \/>FirstRand earnings growth softens UK motor claim blow<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>The UK\u2019s Financial Conduct Authority announced in October that it expects some of the country\u2019s biggest auto lenders to spend \u00a38.2 billion ($11 billion) to compensate customers who were missold car loans. Getting the refund program up and running will cost lenders another \u00a32.8 billion, bringing the total cost to \u00a311 billion.<\/p>\n<p>FirstRand is among a raft of firms disputing the proposal, saying it fails to take proper account of a UK Supreme Court ruling that banks should only pay compensation where the most serious abuse was found.<\/p>\n<p>The firm has set aside more than \u00a3200 million to cover any provisions and other related expenses linked to the saga but said in November that the proposed redress could require it to increase the provision even further.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT:<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>The South African bank offers motor financing through its MotoNovo unit in the UK, which it acquired in 2006. FirstRand\u2019s overall business in the UK comprises about 10% of its earnings and about 20% of its balance sheet, it has said previously.<\/p>\n<p>\u00a9 2026 Bloomberg<\/p>\n<p><em>Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n<p><script data-cfasync=\"false\">\n            !function(f,b,e,v,n,t,s)\n            {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n                n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n                if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n                n.queue=[];t=b.createElement(e);t.async=!0;\n                t.src=v;s=b.getElementsByTagName(e)[0];\n                s.parentNode.insertBefore(t,s)}(window, document,'script',\n                'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n            fbq('init', '779812924991616');\n            fbq('track', 'PageView');\n        <\/script>#FirstRands #future #hinges #motor #finance #decision #CEO<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FirstRand said the fate of its&hellip; <\/p>\n","protected":false},"author":1,"featured_media":14648,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[529,1037,3907,9972,1426,7362,3098],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/14647"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14647"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/14647\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/14648"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}