BMW to repay $77 million to clients over dodgy loans
Car loan provider BMW Australia Finance will refund millions of dollars worth of loans to customers after it was found to have breached responsible lending provisions.
The cost of an enforceable undertaking, sparked by an Australian Securities and Investments Commission (ASIC) investigation, is understood to total a whopping $77 million.
It is understood to include $14.6 million in direct remediation, $7.5 million in cuts to interest rates of current loans and $50 million in loan write-offs.
It it also understood to involve a $5 million payment to a financial literacy community program.
It is believed 15,000 customers were affected by BMW Australia Finance’s failure to use responsible lending practices.
The company provides finance for a wide range of new and second-hand vehicles.
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