BMW is facing a bill of more than £600m from the motor finance mis-selling scandal, one of the biggest hits faced by any lender. In newly filed accounts, the German carmaker's British finance arm increased its provision to cover mis-selling claims from £206m in 2024 to £612m in 2025. That liability is more than the £430m Barclays expects to pay and the £320m set aside by Close Brothers, though it is still dwarfed by Lloyds Banking Group, the worst affected lender, which has provisioned £1.95bn. The Financial Conduct Authority announced a redress scheme in March covering some 12.1 million historic car loan deals, awarding drivers on average around £830 if they were mis-sold car finance, at a cost to lenders of £7.5bn in payouts and £1.5bn in administration. The scheme is currently subject to legal challenges from the UK motor finance arms of Mercedes-Benz, Volkswagen and the French bank Crédit Agricole, and BMW said the final cost could be materially different as a result. BMW also earmarked an extra £25.5m for agreements not caught by the FCA's plans, and BMW Financial Services (GB) fell to a pre-tax loss of £139m last year from a profit of £39m in 2024.
Credit Agricole SA
Barclays PLC
Caisse Régionale de Crédit Agricole Mutuel de Paris et d-Ile-de-France
Close Brothers Group plc
Lloyds Banking Group PLC
Bayerische Motoren Werke Aktiengesellschaft
Volkswagen AG
Mercedes-Benz Group AG
Volkswagen AG VZO O.N.
