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.