FirstRand, a leading financial services group led by South African banker Mary Vilakazi, has disclosed that a new U.K. proposal to compensate consumers missold car loans could cost lenders as much as 11 billion 14.7 billion, exceeding initial estimates.
In a statement, the group said the FCAs latest position appears to exceed what it had expected to be a fair or proportionate outcome. FirstRand added that the proposed approach does not align with a recent ruling from the UK Supreme Court, which held that unfair treatment should be assessed on a combination of facts rather than presumptions.
Dispute over scope of compensation