The revised logo of German carmaker Volkswagen AG is pictured during a preview of the world’s biggest automaker at the international Frankfurt Motor Show IAA in Frankfurt, Germany September 9, 2019. REUTERS/Wolfgang Rattay
(Reuters) – Australia’s corporate watchdog said on Friday it had begun civil penalty proceedings in court against a unit of Volkswagen AG (VOWG_p.DE) for allegedly not making appropriate checks while providing consumer loans.
The Australian Securities and Investments Commission (ASIC) alleges Volkswagen Financial Services Australia Pty Limited did not make reasonable inquiries or verify borrowers’ living expenses while providing 49,380 loan contracts.
Volkswagen operates nationally to provide borrowers with consumer loans to purchase new and used cars.
ASIC alleges these instances of breaches in lending laws occurred between Dec. 20, 2013 and Dec. 15, 2016.
Volkswagen’s unit did not immediately respond to a Reuters request for comment.
Reporting by Rashmi Ashok in Bengaluru; Editing by Maju Samuel