BMW sets aside £200million over car mis-selling scandal

BMW’s UK car finance arm has more than £200million ready to cover a potential hit from the motor finance scandal.

- By Samuel Norman

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The firm joins lenders and motor companies which have been forced to set aside cash to pay millions of drivers who may be eligible for compensation.

The Financial Conduct Authority has said it will introduce an industry-wide redress scheme next year to compensate after a “large number of consumers” were not properly informed about the details of their car finance deal.

In July, the Supreme Court handed City banks a lukewarm win after upholding the appeal of two lenders against claimants in a case.