An investigation by the Australian Securities and Investments Commission (ASIC) has found that BMW Australia Finance Limited (BMW Finance) breached responsible lending provisions between the beginning of 2011 and mid-2016.
BMW Finance agreed to an enforceable undertaking with ASIC which will see it refund $77 million to at least 15,000 customers who, after obtaining loans from BMW Finance suffered financial hardship. The refunds will be the largest ever consumer credit refund scheme in Australian history. BMW Finance will also be required to remove default listings from the credit files of affected customers.
BMW Finance provided loans to consumers for a variety of brands of motor vehicles, directly and indirectly through their network of car dealers, who subsequently suffered financial hardship. Compensation is being made available to all affected customers under the BMW Finance Services umbrella, including customers of Mini Financial Services and Alphera Financial Services.
Customers who have suffered financial hardship after obtaining a loan from BMW Australia Finance can find out whether they may be entitled to compensation by visiting ASIC’s MoneySmart website, or by calling Consumer Credit Legal Service WA’s telephone advice line on 08 9221 7066.
The undertaking will also see BMW Finance pay a $5 million contribution to consumer advocacy and financial literacy programmes in Australia.
You can read the ASIC media release in full here.