Volkswagen Fined £5.4m for Mistreating Vulnerable Customers in the UK

Volkswagen Financial Services must pay £21.5m in compensation for failing to support over 109,000 customers facing financial difficulties.

The Financial Conduct Authority (FCA) fined Volkswagen Financial Services £5.4 million for inadequate treatment of customers in financial distress.
An investigation revealed that the company repossessed cars from vulnerable customers without considering their circumstances.
The FCA identified poor customer service practices, including the use of inappropriate communication and a lack of empathy.
Volkswagen Financial Services agreed to pay £21.5 million in compensation to affected customers, acknowledging past shortcomings.
The FCA emphasized the need for lenders to provide proper support to customers in financial difficulty, highlighting similar penalties imposed on other banks.