COMMERCIAL LOAN REVIEW PROGRAM.

  • 1. What is the BMW Australia Finance (BMW AF) Commercial Loan Review Program?

    The Commercial Loan Review (CLR) Program was set up
    as a result of a review of our internal processes.  Out of that review we
    chose to make some changes to how we assess and process commercial loan
    applications.

    The Program seeks to identify cases where customers
    were granted a commercial loan by BMW AF even though BMW AF may not have made
    additional enquiries about the purpose of the loan before agreeing to grant it.
    It may have been reasonable for BMW AF to make those additional enquiries in
    some cases.

     It is difficult to say ‘after the fact’ what should
    have been taken into account by BMW AF before these loans were granted. This
    Program is accordingly taking a broad and pragmatic approach in considering
    evidence ‘after the fact’, to identify and offer redress in every assessed case
    where BMW AF did not make sufficient enquiries.  The breadth of this
    approach means that some customers will be offered redress under the program
    even though BMW AF in fact made sufficient enquiries before deciding to grant
    the commercial loan.

     The Program is designed to verify cases where BMW AF
    customers entered into a commercial loan between 01 January 2011 and 31 March
    2018 but may not have used the vehicle for commercial (business or investment)
    purposes. To make this assessment we will need to gather information on 
    how the vehicle was used based on information included in your tax return/s.

     Should BMW AF conclude that the vehicle was not used
    mainly for a business or investment purpose, we may pay you a benefit under our
    CLR Program. If your loan is still open, such a payment may take the form of a
    credit to your account. Whether we pay you a benefit or not, if we conclude
    that your vehicle was not used mainly for a business or investment purpose, we
    would agree to modify certain rights and obligations going forward to reflect
    those under a comparable consumer loan.

  • 2. Who is out of scope?

    You will be out of scope for this program if any of the
    following apply:

    Based on the information we have (including what you
    provided before the loan was granted) and the Program parameters, we form the
    view that the use of the vehicle was primarily for business or investment
    purposes;

    Your loan contract is in the name of a business/company/trust;

    Your vehicle lease was one under which the vehicle was
    leased in connection with your employee remuneration or other employment
    benefits, i.e. a novated lease; or

    You did not enter into your commercial loan contract with
    BMW AF between 01 January 2011 and 31 March 2018.

    If you are out of scope of this program BMW AF is
    nonetheless committed to assisting you with any inquiries you may have about
    your commercial loan.

  • 3. What is a commercial loan?

    A commercial loan is a loan, hire purchase
    or lease facility that BMW AF provided to an individual in the belief it was primarily
    for business or investment purposes.

    (Please note: This is what the term means when we use
    it in connection with this Program. It is not a general
    definition or a definition that applies under statute.)

  • 4. What is a consumer loan?

    A consumer loan is a loan or lease facility
    that is primarily for personal, domestic or household use that
    is provided by BMW AF to an individual. This does not include cases where the
    vehicle was leased in connection with employee remuneration or other employment
    benefits, i.e. a novated lease.

    (Please note: this is what the term means when we use
    it in connection with this Program. It is not a general
    definition or a definition that applies under statute.)

  • 5. Why is my BMW AF loan contract classified as a commercial loan?

    The loan contract classification was based on information
    you provided at the time of your loan application in relation to the intended
    primary use of the loan facility or vehicle, e.g. you may have provided a
    Business Purpose Declaration and/or letter from your accountant or other
    supporting documentation indicating that the facility or vehicle would be used
    mainly for business or investment purposes. 

  • 6. What happens if I meet the criteria for a benefit under this Program?

    Should BMW AF conclude that the vehicle was not used mainly
    for business or investment purposes, we may pay you a benefit under our CLR
    Program if there was a difference in the interest you paid under your loan
    versus what you would have paid under a comparable consumer loan. If your loan
    is still open, such a payment may take the form of a credit to your account.
    Whether we pay you a benefit or not, if we conclude that your vehicle was not
    used mainly for a business or investment purpose, we would agree to modify
    certain rights and obligations going forward to reflect those under a
    comparable consumer loan.

     By way of example, these may include:

    • A reduction in the interest you would be charged if you were to pay out the commercial loan early;
    • A waiver of certain of your contractual obligations that are inconsistent with a consumer loan; and
    • Access to BMW AF’s hardship and internal and/or external dispute resolution services.
       
  • 7. If I am offered a benefit under this program, does this mean I should have been placed into a consumer loan instead of a commercial loan?

    Not necessarily. For instance, due to how the program is
    designed, some customers will be offered redress under the program even though
    BMW AF did in fact make sufficient enquiries before deciding to grant a
    commercial loan. In these cases, for instance, it would have been appropriate
    to grant a commercial loan.

  • 8. How long will the review process take and what is involved?

    The time taken will vary as each review is conducted on a
    case by case basis. At this stage, we envisage completing the reviews and
    finalising the program by the end of 2018.

     Your assessment will commence after you register for
    the program and BMW AF has received all relevant information pertaining to
    vehicle use, i.e. a copy of all required tax documents (lodged tax return and
    Notice of Assessment) for the first two years of your loan. For example, if you
    signed the loan agreement on 01/01/2014, please send us your June 2014 and June
    2015 tax documents. Please ensure you remove or blackout your Tax File Number
    (TFN) before sending these documents to us.

    Please note, if there is a joint borrower on your loan, we
    can only finalise our assessment on receiving all relevant tax documents from
    all borrowers.

    If the information provided for vehicle use is unclear or
    incomplete, a BMW AF team member may call you to discuss, or to ask for further
    information.

  • 9. Why has it taken so long for the BMW AF Commercial Loan Review Program to commence?

    BMW AF has had to consider some complex issues in deciding
    how to design the program in a way that is fair to our customers, yet
    relatively straightforward to administer. We believe we have now achieved these
    goals with the program parameters, and are now in a position to start the
    Commercial Loan Review Program.  We apologise for the delay and will do
    our best to assess your loan contract in a timely manner. 

  • 10. How can I grant authority to BMW AF to release loan information to a third party? *

    If you are unable to deal directly with us in relation to
    this program, you may grant authority to a third party. If you do grant
    authority, we will deal with your nominated third party as if they were you,
    including by disclosing relevant information about your loan and circumstances
    to that third party. To grant authority, you must sign a BMW AF Third Party
    Authority (TPA) form in the presence of an adult who is not a party to the loan
    and who also signs the form as a witness. The form can be sent to you directly
    upon your request via email to us at: clrp@bmwfinance.com.au.

    *We encourage those who are an Executor of a Deceased Estate to contact us via

    telephone on 1800 319 468 to
    discuss loan disclosure requirements.

  • 11. What if I disagree with the outcome of the BMW AF Commercial Loan Review Program?

    You can tell us you disagree and we will escalate your case
    to a senior manager for further review and re-assessment.

    To do this you can contact us on 1800 319 468. 

    If you are dissatisfied with the further review and
    re-assessment, we invite you to speak with the BMW AF Internal Dispute
    Resolutions Department, who can be contacted as follows:

    resolutionsofficer@bmwfinance.com.au 

    Phone: 03 9264 4492 between
    the hours of 8am and 5pm AEDT Monday to Friday (excluding public holidays)

    If you remain dissatisfied, you may wish to escalate the
    matter to the Australian Financial Complaints Authority (AFCA), as follows:

    • Phone: 1800 931 678 (free
      call)
    • Email: info@afca.org.au
    • Mail: Australian Financial Complaints Authority, GPO Box 3, Melbourne VIC
      3001

    For information about the AFCA, please refer to their
    website at www.afca.org.au. 

  • 12. Do I still need to make repayments on my loan while I am being considered for the BMW AF Commercial Loan Review Program?

    Yes, if payments fall due under your current commercial loan
    it is important that you continue to pay them even whilst participating in the
    CLR Program.  All terms and conditions of your loan will continue to apply
    unless we write to you advising you otherwise.

     You
    can contact our Collections Team for payment arrangements by calling 03 9264 4490 between the hours of 8.30am
    and 5.30pm AEST from Monday – Friday (excluding Public Holidays) or by
    emailing collections@bmwfinance.com.au.

    Or,if you are experiencing financial difficulties and need some assistance please contact our hardship team by calling 03 9264 4118 between the hours of 8.30am and 5.30pm AEST from Monday – Friday (excluding Public Holidays) or by emailing hardship@bmwfinance.com.au). 

  • 13. How do I contact BMW AF if I would like to participate in the Commercial Loan Review Program?

    Registration for the Program has closed.