Unbelievable....15,000 customers being compensated for being sold a Beamer they

couldn’t afford yet nothing for bank mortgage victims...you should write a big slam

dunk over this and slam dunk ASIC big time......could be a precedent has been set

here that will outrage all bank victims and open the floodgates... 

BMW Finance to pay at least $77 million to customers it duped into loans they couldn’t afford

Kathleen Skene, kathleen.skene@news.com.au, Gold Coast Bulletin

December 6, 2016 9:59am

http://www.goldcoastbulletin.com.au/news/gold-coast/bmw-finance-to-pay-at-least-77-million-to-customers-it-duped-into-loans-they-couldnt-afford/news-story/1c4fac19ca2bc1b4d06ca0b960929aab

CUSTOMERS of car maker BMW will be repaid a record $77 million in compensation after the consumer watchdog found it had irresponsibly issued loans to people who could not afford the luxury cars.

ASIC has accepted an enforceable undertaking from car financier BMW Australia Finance Limited, which will see the financier implement Australia’s largest consumer credit remediation program.

BMW Finance provides motor vehicle finance to consumers, directly and through a network of motor vehicle dealers, and a “sales-driven culture” led to at least 15,000 customers being duped into loans they could not afford, ASIC said in a statement today.

The affected consumers have car loans for a wide range and variety of vehicles and car brands, both new and second hand.

ASIC deputy chairman Peter Kell said the program would be overseen by an independent remediation consultant, who would periodically report to ASIC on its progress and BMW Finance’s compliance with the program.

“BMW Finance had a sales-driven culture that failed to comply with the requirements of the credit laws and resulted in poor outcomes for many consumers,” he said.

“We are encouraged that BMW Finance has recognised these shortcomings and agreed to a remediation program that will see thousands of consumers compensated.

‘This is an example of the staggering cost of poor business practices and should act as a warning to other car financiers to get their houses in order’.”

The compo program is open to all of its customers under the BMW Financial Services, Mini Financial Services and Alphera Financial Services brands, and will provide at least $72 million in redress for consumers made up of:

$14.6 million in remediation payments;

$7.6 million in interest rate reductions on current contracts; and

$50 million in loan write offs.

BMW Finance has also agreed to pay a $5 million community benefit to contribute to consumer advocacy and financial literary initiatives.

The remediation program will identify at least 15,000 customers, who between January 2011 and August 2016 may have suffered hardship as a result of BMW Finance’s compliance failures, and will ensure appropriate remediation.

BMW Finance will also remove default listings and buy back all debt sold to third parties to ensure that the written-off loans are not subject to further collections activities.

While more than 15,000 customers will be invited by BMW Finance to participate in the program, customers who think they might have experienced hardship as a result of entering into their loan are encouraged to immediately register for the program by calling 1800 448 225.

ASIC has also amended BMW Finance’s Australian Credit Licence to extend an external consultant’s oversight of BMW Finance until the end of 2017 and introduce ‘live review’ testing of credit applications.

Consumers can also find out if they are due any compensation from BMW Finance by visiting ASIC’s MoneySmart website.