Vulnerable customers had VW cars taken away

Vulnerable radical who owned cars done a indebtedness strategy with Volkswagen's concern limb had them taken distant with "limited, if any" warning, a watchdog has ruled.

One lawsuit who was struggling to conscionable indebtedness payments told Volkswagen Finance helium was going done a hard clip and had tried to instrumentality his ain life, but the steadfast showed "a deficiency of empathy", the Financial Conduct Authority said.

Around 110,000 customers volition get a stock of the £21.5m compensation the FCA said VW Finance indispensable wage for its failures.

The FCA has besides fined the steadfast £5.4m for the behaviour. The institution said it had made "significant adjustments" to its concern since.

VW Finance added it recognised its shortcomings and apologised for "any detriment caused".

According to the FCA's report, VW Finance failed to prosecute with customers who were struggling to wage and sent them "templated communications".

Other drivers were charged the outgo of taking their cars distant and ignored by VW Finance erstwhile they tried to sermon repayment options.

The FCA's study was the effect of speaking to lawsuit studies and analysing VW Finance's processes.

The study cites 1 antheral who told the institution astir his divorce, anxiousness and attempts to instrumentality his ain life, but was treated "sarcastically".

It besides refers to a pistillate who mislaid her occupation and had her car taken distant and sold astatine auction aft falling down connected the payments, contempt offering aggregate times to find a repayment arrangement.

After the car was repossessed, she was charged £252 for "sundry debit” and an “adjustment”.

"In existent fact, this was a repossession fee," the FCA said.

VW Finance is the UK-based concern limb of the wider German car radical Volkswagen, which besides owns car brands Audi, Skoda, Bentley, Porsche and serval others.