A leaked Ernst and Young report has blasted BMW Finance for offering low-income customers loans to purchase expensive luxury vehicles.
According to The Age, the report says BMW Australia Finance gave $27,000 to a mother of 10 who had a zero hours work contract. The firm also offered close to $50,000 to a 76-year-old man using earning projections instead of his actual income.
Ernst and Young’s report says the actions weren’t isolated to a few cases but represented a wider "sales culture" in the Australian company that rewarded quick turnaround rather than sustainable business.
Earlier this year BMW Australia Finance was fined close to $391,000 (£231,000) for failing to properly examine the incomes of its customers and offering unsustainable loans. The latest fine followed an earlier one in 2015, which cost the firm $306,000 (£181,000).
Despite the fines, the report claims that BMW’s southern hemisphere company continued to reward salespeople that sold the highest-rate loans to customers. It said employees were paid between $375 (£222) and $8163 (£4830) per loan, depending on the interest rate agreed.