In several cases, Volkswagen has unjustifiably collected cars from customers who were behind on car loan payments. Over 110,000 motorists may be affected.
Volkswagen is not only facing massive financial challenges with a debt of 3,200 billion kroner. Now the company has also got a gigantic stand in England.
The English importer has been criticized for taking too harsh measures against customers who are behind on payments and installments on car loans.
It specifically concerns the subsidiary Volkswagen Financial Services, which has been sentenced to pay 48.4 million Danish kroner in fines and 192 million Danish kroner in compensation to 110,000 affected customers.
This is written by The Independent .
The Financial Conduct Authority (FCA), which oversees companies in the UK, has decided to punish Volkswagen Financial Services for their handling of customers between 2017 and 2023.
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According to the FCA, the company did not take sufficient account of customers who were in financially vulnerable situations, and in some cases stole/retrieved the cars, even though the customers still needed them for everyday life, for example to get to and from work.
The customers Volkswagen has illegally targeted are primarily motorists who are and have been behind on car loan payments.
– Volkswagen Financial Services made difficult personal situations even worse by not considering what customers might have needed, says Therese Chambers, managing director of FCA.
The lack of flexibility is the main reason why FCA has found it necessary to find the large stall opposite Volkswagen in England.
The problem was, among other things, that Volkswagen Financial Services used automated systems to handle communication with customers.
These systems followed fixed templates without taking into account the individual customer's situation. This has meant that many customers did not get the necessary support and were met with tough demands, which worsened their financial situation.
Volkswagen Financial Services has acknowledged the errors and has agreed to pay compensation to the affected customers.
– We recognize our shortcomings in these previous cases and have made significant adjustments over the last few years to ensure that we always deliver the right level of service, says a VW spokesperson.
The case has focused on how large companies handle customers in financial difficulties, and Volkswagen Financial Services' response to the criticism has been met with great attention from both authorities and the public.
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