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BMW: Car Finance Compensation for Drivers as Manufacturer Sets Aside £200m for Loan Scandal Payout Claims
BMW UK Finance has increased its compensation provision to £207 million amid ongoing investigations into car loan mis-selling involving undisclosed commissions from 2007 to 2020.
- BMW Financial Services set aside £206.9 million by the end of 2024 to cover compensation claims for historical motor loan mis-selling in the UK.
- This provision rose sharply from £70.3 million a year earlier amid an FCA investigation and an ongoing industry-wide scandal involving commission mis-selling between 2007 and 2020.
- The provision covers compensation payments, legal and administrative costs, while BMW acknowledged receiving multiple complaints and some cases are reviewed by the Financial Ombudsman Service.
- BMW noted significant uncertainty about the final payout, stating claims could be materially less or greater than the provision, with a 5% payout increase requiring an extra £31 million.
- The accounts were signed off before a July Supreme Court ruling partly favouring the industry, which avoided a worst-case scenario, while FCA plans to start redress payments next year.
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BMW Sets Aside More Than £200M for UK Motor Finance Scandal
BMW’s UK car finance business has set aside more than £200 million to cover the potential impact of the continued fallout from the car loan mis-selling scandal. It is the latest car firm to reveal the potential cost of the motor finance scandal, with millions of drivers expected to be eligible for compensation claims. The financial regulator, the Financial Conduct Authority (FCA), is currently consulting on an industry-wide redress scheme for co…
·New York, United States
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Fife Today+16 Reposted by 16 other sources
BMW: car finance compensation for drivers as manufacturer sets aside £200m for loan scandal payout claims
Millions of motorists could soon pocket refunds 💷
·Kirkcaldy, United Kingdom
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Three things drivers should do as a major car manufacturer sets aside £200m for loan scandal payout claims
BMW has set aside £200m for loan scandal payment claims - here’s three things all drivers should know as millions of motorists could soon pocket refunds 💷
·Wolverhampton, United Kingdom
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Total News Sources26
Leaning Left3Leaning Right2Center13Last UpdatedBias Distribution72% Center
Bias Distribution
- 72% of the sources are Center
72% Center
L 17%
C 72%
11%
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