BMW's Australian car finance provider has been forced to pay nearly $700,000 in fines for irresponsible lending. The corporate watchdog says BMW Australia Finance has been slapped with two hefty penalties in the past 12 months for breaching consumer protection provisions between November 2014 and May 2015. The latest fine totalling $391,000 on top of last year's fine of $306,000, both of which have been paid, relates to irresponsible lending, the Australian Securities and Investments Commission (ASIC) says. This includes failing to make reasonable inquiries about consumers' income and cash, entering unsuitable credit contracts with customers and for failing or delaying its obligations to provide customers with their rights and options after repossessing mortgaged vehicles. Advertisement ASIC deputy chair Peter Kell said BMW Finance's failures led to customers entering into unsuitable loans and causing financial hardship. "The outcome with BMW Finance shows failing to comply with important consumer protection provisions can result in significant penalties," he said. BMW Finance incurred the first fine in January last year for breaching consumer protection provisions related to the repossession of motor vehicles. © 2016 AAP Brought to you by
BMW's Australian car finance provider has been forced to pay nearly $700,000 in fines for irresponsible lending. The Australian Securities and Investments Commission (ASIC) states that BMW Australia Finance has received 2015.The heavy penalties in the past 12 months for breaching consumer protection provisions between November 2014 and May two latest fine totalling $391,000 on top of last year's fine of $306,000, both of which have been paid, relates to irresponsible lending. This includes failing to make reasonable inquiries about consumers' income and cash, entering unsuitable credit contracts with customers and failing or delaying its obligations to provide customers with their rights and options after repossessing mortgaged vehicles. ASIC said BMW Finance's failures led to customers entering into unsuitable loans and causing financial hardship.