🚗💸 BMW Reveals a Big Spend on UK Motor Finance Issues! 💸🚗
In a surprising turn of events, BMW has put aside more than £200 million to deal with the ripple effects from a massive car loan mis-selling scandal that’s shaken up the UK motor finance industry. This comes as millions of drivers might be in line to claim compensation.
The drama started when it was revealed that many banks and car finance companies might have been breaking the rules between 2007 and 2020, failing to inform customers properly about commissions paid to dealers. This means many drivers might not have been offered the best interest rates on their car loans.
The Financial Conduct Authority (FCA) is now looking into a nationwide scheme to ensure affected customers get their due redress starting next year.
The latest accounts from BMW Financial Services show they’ve allocated £206.9 million by the end of 2024 to tackle historic commission claims. This is a significant jump from the £70.3 million set aside the previous year. While BMW has received several complaints, some cases are still being reviewed by the Financial Ombudsman Service.
However, BMW warns there’s still quite a bit of uncertainty surrounding the final costs. They mentioned just a 5% increase in potential payouts could lead to an additional £31 million being needed.
Stay tuned as this unfolds, it’s a story many UK drivers will be watching closely! 🚘👀
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