Volkswagen Group (XETRA:VOW) has been fined by Britain’s financial watchdog over its treatment of customers in financial difficulty.
The Financial Conduct Authority (FCA) said on Monday that Volkswagen Financial Services (UK) Ltd would have to pay £5.4 million over unfair treatment of such customers.
VW had also agreed to pay £21.5 million in redress to roughly 110,000 customers over failing to provide tailored support based on individual circumstances between 2017 and 2023.
“This meant that, in some cases, Volkswagen Finance took cars away from vulnerable customers without considering other options,” the FCA said.
“This risked people being put in a worse position, particularly if they relied on their car to travel to work.”
The FCA said the fine came following investigations into how lenders supported customers in financial difficulty.
Some £65 million worth of redress had been secured for over 320,000 customers over the last four years under the supervisory work, the regulator added, after discussions with almost 100 lenders.
FCA joint enforcement executive Therese Chambers said the fine and redress would "send clear signals to lenders that they need to properly support those in financial difficulty".
"Volkswagen Finance made tough personal situations worse by failing to consider what those in difficulty might need," Chambers added.
"It is right it compensates those who suffered."