BMW to com­pen­sate its Aus­tralian clients

Kuwait Times - - BUSINESS -

SYD­NEY: Ger­man car gi­ant BMW has agreed to pay Aus$77 mil­lion (US$57 mil­lion) to com­pen­sate thou­sands of Aus­tralians who were mis­led into tak­ing loans they could not af­ford in the coun­try’s largest con­sumer pay­back scheme. The Aus­tralian Se­cu­ri­ties and In­vest­ments Com­mis­sion said at least 15,000 cus­tomers may have “suf­fered hard­ship as a re­sult of BMW Fi­nance’s com­pli­ance fail­ure”. ASIC deputy chair­man Peter Kell high­lighted BMW’s “sales-driven cul­ture that failed to com­ply with the re­quire­ments of the credit laws and re­sulted in poor out­comes for many con­sumers. “We are en­cour­aged that BMW Fi­nance has rec­og­nized these short­com­ings and agreed to a re­me­di­a­tion pro­gram that will see thou­sands of con­sumers com­pen­sated,” Kell said in a state­ment re­leased Tues­day. “This is an ex­am­ple of the stag­ger­ing cost of poor busi­ness prac­tices.” BMW said yes­ter­day it was ac­tively work­ing with Aus­tralian au­thor­i­ties to meet its reg­u­la­tory com­mit­ments.

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