Trading Styles:
VWFS offers financial solutions under various brand names associated with the Volkswagen Group, including:
- Volkswagen Financial Services
- Audi Financial Services
- SEAT Financial Services
- Škoda Financial Services
- Porsche Financial Services
These trading styles correspond to the respective automotive brands, providing tailored financial products such as vehicle financing, leasing, and insurance services.
Background:
Incorporated on 12 July 1993, VWFS is a private limited company registered in England and Wales under company number 02835230, with the FCA Firm Reference Number 311988.
Were You Overcharged on Your Car Finance Agreement with Volkswagen Financial Services?
If you financed a vehicle through Volkswagen Financial Services (UK) Ltd (VWFS), or one of its trading styles, you may be entitled to claim compensation.
Many drivers are now discovering that they were charged more than they should have been on their car finance agreements, particularly PCP (Personal Contract Purchase) and Hire Purchase (HP) plans.
What’s the Issue?
Recent investigations by the Financial Conduct Authority (FCA) have revealed that many car finance companies, including VWFS, used commission models that encouraged dealers to increase interest rates to boost their own earnings.
This means:
- You may have paid hundreds or even thousands of pounds more over the term of your agreement than necessary.
- You were likely not told that a higher interest rate would result in a higher commission for the broker or dealer.
- The finance was not always offered in your best interests – but in theirs.
This has prompted regulatory changes in January 2021, however with drivers being able go back to agreements they have held in the last 12 years, this has created the potential for millions of pounds in compensation for affected drivers from the like of VW Financial Services.
Could This Apply to You?
You may be able to claim if:
- You took out a PCP or HP agreement with VWFS (or Audi, Škoda, SEAT, or Porsche Financial Services)
- Your agreement was signed before 28 January 2021, when the FCA banned discretionary commission models
- You weren’t told that the interest rate could be increased based on the commission structure
- You now believe you paid more than a fair rate.
What You Can Claim
If successful, you could be refunded:
- The difference between the fair interest rate and the one you were charged
- Associated interest on the overpayment
- Possibly compensation for unfair treatment or lack of transparency.
What To Do Next
It’s easy to check if you have a case. Start by gathering:
- Your finance agreement (or any paperwork from VWFS or the dealership)
- The make and model of the vehicle
- The start and end dates of the finance plan.
Can’t find your agreements?
Use our online car finance Agreement Finder
You can then:
- Submit a complaint directly to VWFS
- Contact the Financial Ombudsman Service if you’re unhappy with their response
- Use Claim My Loss to help review your case – especially if you’re unsure what interest rate you should have been charged.
Need Help Reviewing Your Agreement?
Claim My Loss can help you check if you were overcharged and support you through the claims process giving you expert help, no upfront costs, no obligation.
Read more about Car Finance Claims here.
