FirstRand Mulls Higher Provisions After UK Car-Loan Ruling

FirstRand Ltd., South Africa’s biggest bank by market value, may revise the amount of provisions it set aside to cover potential compensation and other costs it is facing tied to missold car loans in the UK.

Britain’s Financial Conduct Authority said Sunday it will consult on a redress scheme for the missold loans, which could potentially cost lenders over £9 billion ($12 billion), after the UK Supreme Court overturned most of a lower court ruling and found that dealers can act in their own interests and generally don’t need informed consent to charge commission.