Core Viewpoint - BMW's UK motor finance arm has significantly increased its provisions for potential compensation related to mis-sold car loans, indicating the growing financial impact of the scandal on lenders [1][2]. Group 1: Financial Provisions - BMW Financial Services has set aside a provision of £206.9 million by the end of 2024 for historic motor commission claims, up from £70.3 million the previous year [1][4]. - The provision includes costs for redress payments, administration, and legal expenses, with the company acknowledging considerable uncertainty regarding the final costs [4]. Group 2: Industry Context - The Financial Conduct Authority (FCA) is preparing for an industry-wide redress scheme, which could cost between £9 billion and £18 billion, affecting millions of drivers eligible for compensation [2][3]. - The FCA is consulting on compensation for consumers who took out car loans between 2007 and 2020, amid evidence of improper commission disclosures by lenders and brokers [3]. Group 3: Legal and Regulatory Developments - A recent Supreme Court ruling favored the industry, helping to mitigate potential worst-case financial scenarios for lenders, although the FCA still aims to address a significant number of commission complaints by next year [5].