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BMW Financial Services (GB) has set aside £70.3m for potential historic claims related to the disclosure of motor finance commission.
The provision was revealed by the Times which ran the rule over the company’s accounts lodged at Companies House in September.
BMW is just one of many finance houses that have set aside funds to deal with the fallout from the Financial Conduct Authority (FCA) probe of motor finance commission payments.
BMW Financial Services said it believes it did comply with the legislation in the vast majority of cases and added that there was “considerable uncertainty as to the potential outcomes, which could be different from the £70m it had set aside.
In its submission to Companies house, it said: “On 11 January 2024 the FCA announced a review of historic commission claims. The company is engaging wit the FCA to support the review of the matter.”
Included in the £70m provision is the cost of making redress payments, related administration costs and legal costs to date
It said the provision is calculated using a weighting of multiple different scenarios and there was “considerable uncertainty” as to the potential outcomes. The company accounts were signed off on 12 June.