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
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
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.