FCA compliance failing costs Volkswagen Finance £27m

Volkswagen Finance has been slapped with a £5.4 million fine by the Financial Conduct Authority (FCA) for failing to treat customers in financial distress fairly.

Between January 2017 and July 2023, Volkswagen Financial Services, one of the UK’s largest motor finance providers, failed to properly assess and support the needs of over 110,000 customers struggling to make payments.

The FCA found that the company’s actions put many customers, especially vulnerable ones, in even more difficult situations through failing to properly understand their personal circumstances, leading to blanket decisions being imposed.