Not upheld: irresponsible lending and unfair treatment during financial difficulty complaint against BMW Financial Services (GB) Limited

Decision detail

Summary

Mr C complained that BMW Financial Services lent irresponsibly when providing a £72,089.59 loan in 2024 with monthly repayments of around £896, and that the firm treated him unfairly when he reported financial difficulties in early 2025. BMWFS verified Mr C's salary of £160,000 and conducted credit checks showing low existing debt, but the ombudsman found it should have reviewed his committed expenditure more thoroughly. However, using available open banking data showing essential expenditure of £4,800 monthly against verified income of £7,465, the ombudsman concluded the repayments would have appeared affordable with substantial disposable income remaining. The ombudsman also found BMWFS fairly discussed appropriate options with Mr C when he reported difficulties, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman acknowledged that whilst BMWFS should have reviewed Mr C's committed expenditure given the high loan value and significant monthly payments, the available open banking data showed essential expenditure of approximately £4,800 per month. With verified income of £7,465 and loan repayments of around £896, Mr C would have had over £1,700 of disposable income remaining, making the repayments appear affordable and sustainable. The firm's treatment of Mr C when he reported financial difficulties in 2025 was fair and proportionate, offering appropriate options without treating him unfairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website