ob体育 has settled its claim against Volkswagen Financial Services Australia Pty Limited (VWFSA), discontinuing its Federal Court proceeding and accepting a Court Enforceable Undertaking (CEU) from the car financier. The CEU will see VWFSA implement a consumer remediation program which will provide an estimated $4.7 million in redress to approximately 1,800 consumers including:
- $4.1 million in remediation payments;
- $600,000 in interest rate reductions on current contracts; and
- taking reasonable steps to remove default listings from credit bureau files.
VWFSA will proactively contact the consumers who are eligible for the program. These consumers entered into a consumer loan with VWFSA between 1聽July 2012 and 30 April 2017 and meet eligibility criteria set out in the CEU.
In addition, the CEU provides an acknowledgement by VWFSA of ob体育鈥檚 concerns in respect of VWFSA鈥檚 lending practices over the period 1 July 2012 to 30 April 2017.
ob体育 has discontinued its civil penalty proceeding in the Federal Court of Australia against VWFSA with each party bearing its own costs.
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Background
ob体育鈥檚 car finance work
ob体育 commenced the proceeding against VWFSA (19-370MR) after concluding its work on BMW Finance Australia (16-417MR) and implementing the ban on flex commissions (18-329MR). ob体育 has since commenced a review into the car finance sector focusing on debt collection and hardship, with preliminary findings provided to participants in early 2020.聽聽
Information for consumers
VWFSA customers who wish to make enquiries about the remediation program may contact VWFSA by telephone on 1800 761 689 or by email at [email protected]
VWFSA customers who are not eligible for the remediation program, but who wish to raise concerns in relation to their loan or are experiencing financial stress, can contact VWFSA聽 by telephone on 1300 734 567 or by email at [email protected]. Customers who are not able to resolve their complaint with VWFSA can lodge a complaint with the Australian Financial Complaints Authority on 1800 931 678 or visit afca.org.au.
Moneysmart.gov.au , including the that helps you work out the real cost of buying a car.