CashNews.co
Volkswagen Finance has been fined £5.4 million by the UK’s Financial Conduct Authority (FCA) for failing to treat customers fairly.
The fine stems from the company’s breach of key regulatory requirements. Between 2017 and 2020, Volkswagen Finance failed to apply stringent affordability checks to ensure that borrowers were capable of meeting their repayment obligations. As a result, several customers found themselves in financial distress, unable to meet their loan terms.
In addition to the fine, Volkswagen Finance has committed to revisiting the cases of affected customers and providing compensation where necessary. This penalty is part of a broader regulatory trend in Europe, where financial institutions, especially in the automotive sector, are under increased scrutiny for responsible lending practices.