BMW Australia Finance’s irresponsible lending activities uncovered


BMW Australia Finance has recently come under fire following exposure of irresponsible lending to customers.

A report disclosed that the company had been lending money to customers who had a zero, and sometimes negative, disposable income. One specific case revealed that BMW Finance Australia provided a loan of $27,000 (£15, 800) to a single mother of 10 children who had no expendable income. This credit licence breach resulted in the company’s finance division being handed a substantial fine of $697,000 (£409,000).

Solid ethical lending policies

Unethical practices such as those displayed by BMW Australia Finance goes completely against the solid ethical lending policies that Creditplus have in place. As the UK’s leading car finance provider, and regulated by several trade bodies and associations, Creditplus strive to build the correct car finance deal for each of their customers, providing them with a fair financial service as well as ensuring financial protection.

Creditplus’s ethical ethos is reflected by two key elements of providing finance; soft credit searches and affordability. Creditplus believe that applying for car finance should have no negative impact on a customer’s credit file, and soft credit searches are unique in that they do not leave a footprint. The question of affordability is conducted through open and transparent communication with each customer, where the providing of a finance loan is based on whether they are able to pay it back. As well as maintaining their ethical lending approach, these two components are vital to Creditplus’s decision making process.

Treating customers fairly

Treating customers fairly is also an integral part of Creditplus’s business activity, and being regulated by the Financial Conduct Authority (FCA) cements their ethical practices. Furthermore, Creditplus provides a 14 Day Customer Promise, so if a customer is faced with a product that does not match its description, they have 14 days to return it.

Creditplus’s integrity, transparency and their concern for customers’ well-being means that the best finance deals are given to the individual, and they will not be given a loan that they are unable to pay back.

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