Overview

• BMW Financial Services UK lifted its provision to about £206.9 million from £70.3 million to cover potential compensation, with accounts noting outcomes remain highly uncertain and a 5% payout-rate change could add £31 million.
• The Financial Conduct Authority plans an October 2025 consultation on an industry-wide redress scheme, with payments targeted to begin in 2026.
• The regulator has indicated total industry costs could reach roughly £9 billion to £18 billion, and millions of customers may receive payouts worth hundreds of pounds each.
• A recent Supreme Court ruling narrowed broad litigation but confirmed some pre‑2021 agreements can be unfair, exemplified by Johnson v Firstrand where a 55% undisclosed commission had to be repaid with interest.
• Consumers who financed cars before 2021 are advised to review their agreements, check whether a discretionary commission arrangement or undisclosed excessive commission was used, and complain directly to lenders or the Financial Ombudsman Service for free.