Volkswagen financing unit faces fine in Australia for irresponsible lending practices
( December 20, 2019, 04:01 GMT | Official Statement) -- MLex Summary: Volkswagen's Australian finance unit faces a fine after the country's corporate regulator filed civil penalty proceedings against the subsidiary for alleged irresponsible lending practices. Volkswagen offers customers loans to purchase new and used cars. The Australian Securities and Investments Commission alleged that the unit failed to properly inquire and verify borrowers living expenses before offering such loans. The regulator said the unit breached responsible lending laws for 49,380 loan contracts it issued between December 2013 and December 2016. The regulator said it is asking the court to find that Volkswagen Financial Services Australia contravened responsible lending laws in respect of each individual loan, with each contravention carrying a maximum penalty of approximately A$1.7 million ($1.17 million). The full statement from the Australian Securities and Investments Commission follows; the court documents are attached. ...
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