The Financial Conduct Authority (FCA) has fined Volkswagen Financial Services (UK) Limited (Volkswagen Finance) £5,397,600 for failing to treat its customers in financial difficulty fairly. Volkswagen Finance has agreed to pay over £21.5m in redress to around 110,000 customers who may have suffered harm because of its failings.
Members should be aware of the decision and recognise the shortfalls identified by the FCA to ensure that their own practices are meeting expected standards. The FCA's findings specifically mention failings compounded by poor templated and automatic communications, something the Consumer Duty aims to avoid under the consumer understanding and consumer support outcomes.
Members are advised to read the article from the FCA and review practices for treatment of vulnerable customers.
