ASIC sues Volkswagen Australia unit for alleged lapses while providing loans

Australia's corporate watchdog said on Friday it had begun civil penalty proceedings in court against a unit of Volkswagen AG for allegedly not making appropriate checks while providing consumer loans.

The Australian Securities and Investments Commission (ASIC) alleges Volkswagen Financial Services Australia 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 December 20, 2013 and Decemebr 15, 2016.

Volkswagen's unit did not immediately respond to a Reuters request for comment.

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