The Australian Securities and Investments Commission (ASIC) has settled its claim against Volkswagen Financial Services Australia Pty Limited and discontinued its Federal Court proceeding.
In coming to the settlement, ASIC accepted a court-enforceable undertaking from the car financier to implement a consumer remediation program for about 1800 consumers who entered consumer loans between 1 July 2012 and 30 April 2017. The remediation program includes:
- $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.
The latest action by ASIC on car finance follows the previous work on BMW Finance Australia and implementing the ban on flex commissions.
More information is available.
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