The motor finance division of Volkswagen has been fined £5.4 million by the City regulator and is paying more than £21.5 million in compensation for “serious” failings in its treatment of customers in distress.
An investigation by the Financial Conduct Authority found a series of problems with the way Volkswagen Financial Services (UK) handled customers who had fallen behind on payments, including repossessing cars from those who were clearly vulnerable without entertaining other options.
The regulator’s inquiry identified the case of one troubled customer in arrears who had told the Volkswagen division that he had attempted suicide and repeatedly warned the company that he was struggling with a difficult divorce, the loss of his job and other problems including depression. Yet the unit did not