A major bank has vowed to leave the UK after Rachel Reeves introduced an "unfair" scheme that will see its car finance compensation payouts soar to £750million. FirstRand has decided to quit the UK after blasting the Financial Conduct Authority’s (FCAs) car finance ruling as “disproportionate and unfair”.

It is now expected to exit from its ‌UK challenger bank Aldermore, with the business expected to be put up for sale. FirstRand Bank owns car finance service MotoNovo, one of the largest lenders in the UK. The business is expected to pay out a whopping £750million in compensation this year to motorists who were mis-sold car finance.

The bank has revealed it will need to take an additional £510million in provisions to pay all motorists who are entitled to compensation payouts. The lender confirmed their position in statement to the Johannesburg Stock Exchange.

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