The unit used poorly templated, automated communications and took away cars from vulnerable customers without considering other solutions
VOLKSWAGEN’S British financial services unit will be fined £5.4 million (S$9.2 million) for unfairly treating customers who were in financial difficulty between 2017 and 2023, a British regulator said on Monday (Oct 21).
Volkswagen Finance Services (UK) has agreed to pay over £21.5 million in redress to around 110,000 customers who may have suffered.
The carmaker’s unit had also taken cars away from vulnerable customers without considering other options, the Financial Conduct Authority (FCA) added.
The incidents occurred between January 2017 and July 2023, and were compounded by poorly templated and automated communications.
“Volkswagen Finance made tough personal situations worse by failing to consider what those in difficulty might need. It is right (that) it compensates those who suffered,” FCA said.
The watchdog has fined banks such as HSBC, Barclays, Lloyds and TSB for failing to treat customers fairly during financially difficult times. REUTERS
