BMW Finance compensation

Are you entitled to compensation for your BMW Finance car loan?

ASIC recently took action against BMW Australia Finance (BMW Finance) for signing up customers to car loans they could not afford between 1 January 2011 and 31 August 2016. BMW Finance has agreed to compensate customers who took out unsuitable loans during this period.

Here we explain whether you may be entitled to compensation and how you can claim it.

Am I entitled to compensation from BMW Finance?

You may be entitled to compensation if you:

  • obtained a car loan from any brand under the banner BMW Financial Services, Mini Financial Services or Alphera Financial Services between 1 January 2011 and 31 August 2016, and
  • suffered some form of hardship as a result of entering into the car loan.

By contacting BMW Finance and registering for the compensation program, you will be able to discuss any possible compensation.

How do I know if I have suffered financial hardship?

Here are some signs that you may not have been able to afford your car loan and you might be entitled to compensation:

  • your expenses consistently exceeded your income
  • there were many reversals of payments and dishonour fees on your bank statement
  • your bank account was regularly overdrawn
  • you relied on other forms of credit to manage your repayments, or you had to obtain more credit since you got the loan
  • you could not meet other expenses, such as electricity bills or rent
  • most or all of your income was going on loan repayments on or around your pay day
  • you withdrew all or most of your income on or around the day you were paid.

Hardship can take many forms. Even if you didn't miss a repayment on your loan, you may still have suffered hardship as a result of getting that loan. By registering for the compensation program, you will be able to discuss any hardship you experienced because of your loan.

How do I claim compensation?

BMW Finance will contact you if they have evidence you have experienced hardship as a result of getting the car loan. They will be checking if you have defaulted on your loan or submitted a hardship application.

Otherwise, you can contact BMW Finance to register your claim. There is no charge to register, and you can do this by calling BMW Finance on 1800 448 225 between 8am and 5pm AEST, Monday to Friday (excluding public holidays).

Alternatively, you can register by emailing the BMW Finance brand on your loan contract:

You must register by 31 December 2017 for your claim to be considered.

What will happen if I register for compensation?

When your claim is assessed by BMW Finance they will review whether you could actually afford the loan, and how the loan has affected your financial situation. You will get the chance to discuss any hardship you suffered as a result of the car loan, so that you are fairly compensated.

What if I disagree with the outcome?

If your claim is successful, you will have the option of accepting or declining the amount of compensation you are offered.

If you decline the compensation, you can ask for your situation to be reassessed.

If you disagree with the outcome, you can lodge a complaint with the Credit and Investments Ombudsman.

How do I know if I can afford a car loan?

ASIC's MoneySmart website has tools to help you work out your car loan repayments. Our personal loan calculator crunches the numbers on your repayments and our budget planner helps you calculate how much you can spend on repayments once you pay your other bills.

Work out the full cost of running and owning different types of cars.

MoneySmart Cars app

By law, credit providers must lend money responsibly. If your BMW Australia Finance car loan was unsuitable for you, you may be entitled to compensation.

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Last updated: 13 Feb 2018