VW receives UK fine, vehicle finance becomes crucial issue

On 21 October 2024, the UK Financial Conduct Authority (FCA) issued a £5.4m (US$7.01m) fine to Volkswagen Financial Services (VFS). Stating that the company failed to treat its customers in financial difficulty “fairly” during 2017-2023, the watchdog added that more than £21.5m will be paid to 110,000 of those who may have “suffered harm” from VFS’ actions.

The company covers financing for Volkswagen Group brands like Audi, Cupra, and Skoda. According to its official press release, the FCA investigation was carried out over 13 months. In particular, it noted that cars were repossessed in instances where customers required them for work purposes, even though less drastic options were still available.