BMW’s UK motor finance division has sharply increased the money set aside to cover potential compensation for drivers mis-sold car loans, allocating nearly £207 million in provisions. Banks including Lloyds and Santander UK, along with the finance arms of major carmakers, are preparing for significant hits to their balance sheets. BMW’s disclosure, made in accounts filed at Companies House, shows its provision has nearly trebled from the £70 million reported last year. In its annual report, BMW’s UK finance arm admitted there was “considerable uncertainty” around the final scale of compensation. Although a Supreme Court ruling in July largely sided with the industry over motor finance arrangements, the FCA has signalled that it will still enforce wide-ranging redress.