Company BMW the German said on Tuesday it would respond 72 million Australian dollars (8.53 million US dollars) to a number of car buyers in Australia after they have been misled to believe that they can buy luxury cars produced by the company, despite not being able to so effectively that.
The newspaper "Sydney Morning Herald" reported that the financial arm of the company in Munich also will pay five million dollars to a community fund aims to educate people to matters related to finance and borrowing.
The Securities and Exchange Commission and the Australian investment companies watchdog has revealed this year that the company "BMW Australia Finance" has violated responsible lending practices.
The committee said it will select 15 thousand clients at least have been exposed to difficulties during the period from January second / January 2011 and August / August 2016 as a result of non-compliance "BMW Finance" for the Consumer Protection Act.
Said Peter Kell, Vice-Chairman of the Committee said that "BMW Finance has driven sales culture has failed to comply with the requirements of the credit laws and resulted in negative consequences for many customers."
He added: "This is an example of the high cost of bad business practices and should be a warning to other financiers cars to correct their path."
The Commission revealed that sales in the company's officials got rewarded for their grant to buy car loans to people they can not repay those amounts.
In a review of the Commission for the company, "BMW Australia Finance" during the month of August / August, were examples of the discovery to lend to people unable to repay such a loan worth 27 thousand dollars to the mother count ten children and have income limited, as well as for a refugee 21 / year / a loan of 23 thousand dollars though it has jobs for only one month, while the 76-year-old man received a loan of $ 50 thousand dollars, twice the value of the car.
And it will oversee the independent consultant will provide treatment program then report to the Securities and Exchange Commission and the Australian investment.
The "BMW Australia Finance" already paid hundreds of thousands of dollars in penalties to the Securities and Exchange Commission and the Australian investment because of violations of the Consumer Protection Act against the backdrop of its own lending practices.
She said the newspaper (The Herald) that "BMW Australia" and agreed to refund after encountering a threat to lift the class action lawsuit by disgruntled borrowers and the 15 thousand.