Mastercard, UniRush to pay $13 million for 2015 RushCard glitch
In sweeping changes to consumer financial protections, Trump carries out one of his biggest lies yet

Volkswagen offers repair or buyback in settlement for 3.0-liter TDI diesel vehicles

6a00e550081576883401b8d2078c41970c-320wiThe Volkswagen Group of America has agreed to compensate consumers who bought 3.0-liter TDI diesel vehicles through repairs, additional financial payments, and buybacks for some models, the Federal Trade Commission said Wednesday.

Under a federal court order, owners of older vehicles – model years 2009-2012 – will be able to sell their car back to Volkswagen and get repaid for their losses.

Consumers are eligible to receive about $26,000 to $58,000 for a buyback, depending on the model and mileage. These owners can also choose to keep their cars and receive an emissions modification that would improve their vehicle’s emissions, if a modification is approved by the U.S. Environmental Protection Agency and the California Air Resources Board. Consumers receiving an emissions modification will also get financial compensation.

For owners and lessees of newer vehicles – model years 2013-2016 – Volkswagen is expected to obtain regulatory approval for an emissions repair that brings the cars into compliance with original emission standards and doesn’t reduce its performance. If Volkswagen obtains EPA and CARB approval within the timeframe in the FTC order, consumers will receive this repair and additional financial compensation ranging from about $8,500 to $17,600.

This means consumers with newer vehicles will receive the car they thought they purchased – plus an additional payment, the FTC said. If an emissions repair isn’t available in the timeframe in the FTC order, then Volkswagen is required to offer to buyback those models and provide lease terminations.

Some consumers who leased an affected vehicle are eligible for compensation. Options for them vary based on make, model, model year, and the availability of approved emissions modifications or repairs.

Owners who sold their TDI vehicles after the Volkswagen defeat device issue became public are also eligible for compensation.

If an emissions repair is approved, the FTC said consumers would receive more than $1.25 billion from the 3.0-liter vehicle settlement. However, if no emissions repair is approved and the company is required to offer buybacks for all 3.0-liter TDI models, Volkswagen may have to pay as much as $4 billion, according to the order. This amount includes a contribution from Bosch, which manufactured the defeat device.

Earlier, Volkswagen agreed a $10 billion settlement with the FTC to compensate a larger group of consumers who had 2.0-liter TDI Volkswagen cars.

Under the FTC settlement, Volkswagen also will pay the cost of administering the settlement program, including vehicle repairs and notification.

The FTC sued Volkswagen in March, charging that the company deceived consumers with its advertising campaign used to promote its “Clean Diesel” Volkswagens and Audis, which falsely claimed that the cars were low-emission, environmentally friendly, met emissions standards, and would maintain a high resale value.

Hundreds of private lawsuits have been submitted as a proposed class action settlement, which is consistent with the FTC’s order, the FTC said.

A separate settlement with the U.S. Department of Justice and Environmental Protection Agency resolved Clean Air Act violations charges from the two agencies.

Consumers can determine if they’re eligible for compensation at VWCourtSettlement.com and AudiCourtSettlement.com. They can also use these websites to submit claims, make appointments, and receive updates.

Payments will be available when the DOJ, EPA, and private settlements become final, the FTC said.

Copyright 2017, Rita R. Robison, Consumer Specialist

Save

Save

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)