Did you finance or lease your car from VW or another manufacturer? Did you sign your contract after June 11, 2010?

Here’s the solution:Return your car and get your money back.
We’ll show you how to do it, what to look out for, and help you get what you’re entitled to.

This is made possible by the "cancellation joker"!

 According to the Ravensburg Regional Court, car buyers who signed a contract after June 13, 2014, do not even have to pay for the miles driven in the car.

The loan and lease agreements of nearly all auto finance companies contain errors.

Consequence: Buyers who financed their car after June 10, 2010, using a loan or lease agreement arranged by the dealer may rescind the contract at any time. They will then receive a refund of their down payment and any installments paid. In return, they must return the car.

New: According to the Ravensburg Regional Court, car buyers with contracts signed after June 13, 2014, do not even have to pay for the miles driven in the car. Car loans and leasing contracts from VW banks (Audi, Seat, Skoda) can also be rescinded.
Since financing agreements are contracts associated with the purchase of the vehicle, consumers can use this method to

  • return the car they purchased and 

  • receive a large portion of the money paid, or all of it back.

Stiftung Warentest and Test.de have reported that, for example, the loan agreements issued by the VW Group’s auto finance companies did not comply with legal requirements.

For contracts entered into on or after June 13, 2014, an additional consumer-friendly provision applies: In such cases, buyers are not required to pay compensation for use or loss of value following a valid cancellation.

Consumers can rescind car loans and lease agreements entered into on or after June 11, 2010. In many cases, the contracts contained incorrect cancellation instructions. In such cases, consumers can still notify the financing banks of their rescission, because if there is an error in the instructions, the cancellation period never begins.

Contracts effective June 11, 2010
If the cancellation is validly declared, the bank must refund the payments made, less a portion for the use of the property.

Contracts entered into on or after June 13, 2014
It is particularly worthwhile to exercise the right of rescission for contracts entered into on or after June 13, 2014. In such cases, the consumer is not even required to pay for use or compensation for loss of value. The bank may only retain the interest portion of the installments already paid
Many banks have used incorrect cancellation policies.
The basis for the “cancellation joker” is always the same: In many transactions, consumers are entitled to a right of cancellation—usually 14 days—and this applies to car loans as well. However, this cancellation period does not begin until the customer has been correctly informed of their right of cancellation. If the cancellation policy contains errors or if the borrower does not receive it at all, they thereby have a “perpetual right of cancellation.” And apparently, many banks have made mistakes regarding car loans.

Car loans from these automakers and banks are affected:
In general, the right to rescind applies to car loans taken out on or after June 11, 2010—provided the cancellation policy was incorrect. The car manufacturers’ own banks are likely to be the most affected, as they finance a large portion of new cars. According to TEST.de, the following banks are affected.

  • Alfa Romeo Bank(branch of FCA Bank Deutschland GmbH)
  • Bank11 for Private Customers and Retail GmbH:
    BDK Bank Deutsches Kraftfahrzeuggewerbe GmbH:
  • BMW Bank GmbH:
    BW Bank Baden-Württembergische Bank(a subsidiary of Landesbank Baden-Württemberg; finances Porsche vehicles)
  • Commerz Finanz GmbH:
    Fiat Bank(branch of FCA Bank Deutschland GmbH)
  • Ford Bank(a branch of FCE Bank plc)
    Lotus Financial Services (AKF Bank GmbH & Co. KG)
  • Jaguar Bank
    (Branch of FCA Bank Deutschland GmbH)
    Lancia Bank ( Branch of FCA Bank Deutschland GmbH)
  • Land Rover Bank
    Maserati Bank
  • Mercedes-Benz Bank AG
  • Mercedes-Benz Leasing GmbH
    Nissan Bank(a division of RCI Banque S.A., German branch)
  • Opel Bank GmbH:
    Porsche Financial Service GmbH & Co. KG
  • PSA Bank Deutschland GmbH(Peugeot, Citroën)
    Renault Bank(RCI Banque S.A., German Branch)
  • Santander Consumer Bank AG:
    S-Kreditpartner GmbH (lending partner of the Sparkassen):
  • Toyota Kreditbank GmbH
    VW Bank and its branches for Seat, Skoda, and Audi:
  • VW-Leasing GmbH: Volkswagen Bank and other banks within the VW Group (Audi Bank, SEAT Bank, ŠKODA Bank)

In addition, we believe that the following banks have also made errors in their cancellation policies regarding auto loans. Since these loans are often arranged directly by dealers, other automakers may also be affected:

  • Targobank
  • Commerzbank

We are happy to assist you in determining whether you are eligible to rescind the financing agreement and, consequently, reverse the entire car purchase.

Tips on the "cancellation wild card"

VW Bank and its branches for Seat, Skoda, and Audi, as well as other auto finance companies, failed to properly inform borrowers about their right of withdrawal. As a result, the two-week withdrawal period does not begin to run. Borrowers can still withdraw from contracts signed years ago. They can then return the financed car. test.de offers tips on withdrawing from an auto loan.

  • Affected Contracts.Lawyers have identified errors in contracts entered into with various auto finance companies on or after June 11, 2010. You can still rescind these contracts today. We suspect that contracts from many other auto finance companies are also flawed. Rescission is worthwhile if the car purchase and the loan agreement came from a single source—as is often the case when the car dealer arranged the financing for the vehicle.
  • Benefit for customers.If you cancel a loan agreement related to a car purchase, you must return the car. In return, you will receive both your down payment and the loan installments back. The bank is only allowed to keep the interest—which is usually not very high.
  • Older loan agreements.For loan agreements entered into on or before June 12, 2014, you must also pay compensation for the miles driven in the car. The calculation formula is simple: “Miles driven / typical total mileage (usually 250,000 miles, sometimes 200,000 for smaller cars, 300,000 for larger ones) * purchase price.” As a rule, revocation is worthwhile for cars that haven’t been driven very far yet. If a car has already covered a large portion of its typical total mileage, it is sometimes cheaper to keep it, depending on the car’s age and condition.
  • More recent loan agreements.According to consumer advocates, lawyers, and judges such as Marianne Voigt of the Berlin Regional Court, you are not required to pay compensation for use for loan agreements entered into on or after June 13, 2014. In many cases, rescinding the agreement is therefore a profitable option.
  • Sending the cancellation notice.Send the letter by certified mail with return receipt requested. Keep the signed return receipt in a safe place.
  • Possible response from the bank.Sometimes, bank employees will call you after you’ve withdrawn from the contract. In such cases, you can calmly listen to any suggestions they might have. However, you should not get into a discussion about whether the withdrawal makes sense or what specific benefits it will bring you. Do not explain why you withdrew from the contract. You are not required to give a reason. It is your legal right. Refer to your letter of withdrawal and reiterate your request for confirmation of the withdrawal.
  • Legal review.If you do not receive confirmation of the cancellation, you should have your case reviewed by an attorney who has experience with the cancellation of auto loan agreements from the bank in question. Legal protection insurance. If you have traffic legal protection insurance or take out a policy in time before the cancellation, the insurance must cover the costs of the legal dispute, provided that loan cancellation is not expressly excluded. Most traditional legal protection insurers already have such exclusions. An example of such an exclusion clause: “There is no legal protection if (…) the policyholder exercises a right (e.g., revocation) (…) and, as a prerequisite for this, invokes the inadequacy of the (…) instruction (…) (…).” Specialized providers that—like the ADAC—offer only traffic legal protection often have to cover the costs of credit revocation disputes. If in doubt, ask a lawyer whether your insurance must pay. Note: A three-month waiting period often applies after taking out legal protection insurance.

Costs

The initial review of the auto financing/leasing agreement and the brief consultation that follows are free of charge. Fees are only incurred if we proceed beyond the initial review to provide further services for you.

In general, attorneys’ fees are determined in accordance with the German Lawyers’ Fees Act (RVG), which is based on the value of the claim. We would be happy to provide you with a precise cost estimate.

In many cases, your existing legal expenses insurance will cover the costs of out-of-court proceedings—and, if necessary, court proceedings as well. We would be happy to advise you on this matter or obtain the necessary confirmation of coverage. If you take out a new legal expenses insurance policy, it will also cover the relevant costs, either immediately or after a three-month waiting period, depending on the policy. Please ask us for more information.