Finance

Volkswagen Unit Fined £5.4 Million for Mistreating Borrowers

  • British finance company is paying redress to 110,000 customers
  • FCA said vulnerable borrowers weren’t given support to repay

A Volkswagen AG GTE Golf hybrid.

Photographer: Luke MacGregor/Bloomberg

Volkswagen AG’s British finance unit has been fined £5.4 million ($7 million) for mistreating borrowers in difficulty, the Financial Conduct Authority said.

Volkswagen Financial Services (UK) is also paying £21.5 million in redress to around 110,000 customers who may have suffered harm because of its failings between January 2017 and July 2023, the FCA said in a statement on Monday.