Overview
- BMW Financial Services lifted its UK provision to £206.9m by end-2024 from £70.3m, warning outcomes could be materially higher or lower and that a 5% payout rise would add £31m.
- The Supreme Court’s recent ruling narrowed broad claims but confirmed some deals can be unfair, with Johnson v Firstrand requiring repayment of a 55% undisclosed commission plus interest.
- The FCA plans to consult in October 2025 on an industry-wide redress programme and is targeting payments in 2026, with an aim to curb reliance on claims firms and keep the process simple.
- Regulatory estimates point to total industry costs of about £9bn–£18bn, with other lenders already provisioning, including Lloyds (£1.2bn), Santander (£295m) and Close Brothers (£165m).
- Potentially affected agreements span 2007–2020 and include discretionary commission arrangements banned in 2021; consumers are advised to keep finance paperwork and can complain directly or await the scheme.