Volkswagen Financial Services (UK) has been embroiled in controversies for the past several years The company’s issues began in 2015 when it emerged that Volkswagen had rigged the emissions of its diesel cars, leading to an investigation by regulators In the UK, this investigation revealed that VW had sold over a million cars with illegal emission levels between 2009 and 2015.
The scandal resulted in Volkswagen setting aside billions of pounds for recalls and in fines, compensation, and lawsuits worldwide Volkswagen Financial Services (UK) was also affected and is now facing allegations from customers related to mis-selling financial products.
Here’s everything you need to know about Volkswagen Financial Services (UK) claims and how they may impact you.
## What is Volkswagen Financial Services (UK)?
Volkswagen Financial Services (UK) is a subsidiary of the Volkswagen Group, which provides financial services to Volkswagen and Audi customers in the UK The company offers financing options for vehicles and related products like insurance.
## The Claims Against Volkswagen Financial Services (UK)
The claims against Volkswagen Financial Services (UK) relate to the mis-selling of “Personal Contract Purchase” (PCP) finance to customers Personal Contract Purchase is a type of car finance that allows customers to drive a new car for a low upfront payment, with monthly instalments.
The concern is that some customers were talked into taking out PCP finance agreements, even though they could not afford them, or payments were set too high These agreements often resulted in customers being left with a high depreciation rate for their vehicles, which could leave them in financial difficulty.
Some customers are also claiming that Volkswagen Financial Services (UK) did not properly explain how PCP finance works, such as the end of the Payment period which involved a ‘balloon payment’ This “balloon payment” is usually several thousand pounds, and if customers cannot afford it, they may struggle to pay, which could lead to the loss of the vehicle.
## Impact on Customers
The impact of the bundling scandal on customers can be devastating Some customers ended up paying more than the car was worth during the term of the finance Some found themselves locked into contracts with significant financial pressure, while others had their credit rating damaged when they could not keep up with payments.
Volkswagen Financial Services Limited has admitted that hundreds of thousands of customers across the UK may have been affected Volkswagen Financial Services (uk) claims. It has stated that it is looking at four key areas to assess whether any redress is required The areas are affordability checks, interest rates charged, documentation, and the treatment of customers in financial difficulty.
## What Volkswagen Financial Services (UK) is doing to Address the Claims
Volkswagen Financial Services (UK) has stated that it is committed to investigating allegations of mis-selling The company has set up an internal team dedicated to reviewing cases and is offering free, independent financial advice to all affected customers.
Volkswagen Financial Services (UK) is conducting a thorough review of more than 800,000 agreements made between 2012 and 2018, and is also offering redress to affected customers The company has stated that this could include waiving any outstanding payments and returning excess payments that customers have made.
## What Customers Can Do
If you took out PCP finance with Volkswagen Financial Services (UK) and believe that you were mis-sold your agreement, you should contact the company and make a claim If you are unsure whether you were mis-sold, you can request a copy of your credit agreement to check the terms of the finance.
Customers who have already been contacted by Volkswagen Financial Services (UK) about the potential mis-selling of their PCP finance agreement can get in touch with the company at any time Volkswagen Financial Services (UK) will review each case individually, and if it finds that mis-selling occurred, it will offer redress on a case-by-case basis.
## Conclusion
The Volkswagen Financial Services (UK) claims have affected thousands of customers, with many taken advantage of in the rush to buy new cars If you think you were mis-sold your PCP finance agreement, you should make a claim with Volkswagen Financial Services (UK) to get compensation.
It is vital not to ignore the situation as this will not go away, and the best course of action is to act as soon as possible This issue has severely damaged the reputation of the Volkswagen Group, which has pledged to take a more comprehensive approach to governance and place greater emphasis on transparency.