VW PLEDGE

The Volkswagen Pledge is an Involuntary Unemployment Payment Waiver benefit offered by VCI as part of our continued efforts to support the Volkswagen Community-Driven Promise. This benefit is provided at no additional cost to the customer by VCI. Subject to certain vesting, timing and other requirements, should a customer become involuntarily unemployed, this program may waive their monthly account payment, up to $750 per month, for up to six months (assuming the customer qualifies for six monthly payment waivers). There are restrictions with an offering such as this, so it is imperative that customers have the opportunity to review the official Involuntary Unemployment Payment Waiver Terms and Conditions for full program details prior to executing the contract. 

The program applies to all VW customers who purchase a (previously unused and untitled) Volkswagen for personal use from a franchised VW dealer, and finance the purchase of that vehicle through VCI on a traditional (non-balloon) retail instalment sales contract between April 15, 2020 through April 30, 2020 (note, that this offering may be extended). This benefit is not available on vehicles purchased in New York state due to New York insurance laws and guidance from the New York Department of Financial Services.

The terms and conditions of the Involuntary Unemployment Payment Waiver benefit are detailed in the Involuntary Unemployment Payment Waiver Terms & Conditions that was included with the dealer bulletin (Bulletin V2004-890 INF). The IUPW addendum can also be obtained from our Program Administrator by calling 1-888-778-9043. This IUPW shall be treated as an “addendum” to any qualifying RISC sold/assigned to VW Credit, and therefore, must be included in the funding package submitted to Volkswagen Credit. Customers should also receive a copy of the fully executed RISC and IUPW Terms and Conditions at the time of deal consummation. 

No. Leases and Drivers Option (Balloon) contracts are not eligible. The IUPW benefit is only available on traditional retail instalment sales contracts financed on non-balloon RISCs which are sold/assigned to VCI, and which relate to the financing of new and unused, previously untitled Volkswagen vehicles, sold to a retail customer by a franchised Volkswagen dealer between April 15, 2020 through April 30, 2020 (excluding NY dealers). 

No. The Involuntary Unemployment Payment Waiver offering is only available through RISCs assigned to Volkswagen Credit.

The benefit conveyed through the Volkswagen Pledge is offered to customers at no additional charge. 

The benefit will be in effect for up to 12 months after an Eligible Vehicle purchase. Subject to the Terms & Conditions expressly outlined in the IUPW, the customer must submit an eligible claim within 90 days of their unemployment. If an eligible claim is submitted within that period, it is possible that a payment waiver may occur outside the 12-month benefit period so long as all other Terms & Conditions are satisfied. 

Please review the terms and conditions on the Involuntary Unemployment Payment Waiver Terms and Conditions. 

Yes, per the Terms & Conditions of the IUPW, there are three coordinated caps. The first cap is a dollar maximum on the monthly payment waiver. An individual monthly payment waiver will be capped at $750. If a customer’s monthly payment exceeds $750, the customer is responsible for the remaining portion of the monthly payment. The second cap is a cap on the number of waived monthly payments. Assuming continuing eligibility under the IUPW,,, the benefit afforded under the IUPW may waive up to a total of 6 payments (each monthly payment subject to the monthly cap previously outlined). And finally, there is an aggregate cap that the cumulative total of all waived payments cannot exceed $4,500. This aggregate cap is really a disclosure which confirms that if the first two caps are applied, the maximum aggregate benefit under the program could reach (but not exceed) $4,500. This assumes that the customer receives six payment waivers, with each waiver reaching the $750 monthly maximum.

The Volkswagen Pledge is included on all Eligible Vehicles. Customers must be presented with the IUPW prior to or at the time of contracting. The IUPW is an addendum to the RISC, and must be included in the funding package submitted to Volkswagen Credit. Within a month of contracting, our IUPW Administrator, cynoSure Financial, Inc., will mail customers a notification packet with details of the IUPW and its beneficial terms, together with instructions on how to file a claim with the Administrator. Note: this same information is found in the IUPW Terms & Conditions presented to customer at the time of contracting.

Dealers are required to present the customer with the IUPW Terms & Conditions at the time of contracting, and to include the IUPWTC in the funding package assigned to Volkswagen Credit. This benefit is being extended to all customers who purchase an Eligible Vehicle, and whose contracts are assigned to VW Credit. 

The dealer needs to ensure that the IUPWTC addendum is included in the funding package submitted to Volkswagen Credit at the time of assignment. VW Credit will ensure that the administrator is provided with the list of buyers purchasing Eligible Vehicles.

Yes, it is possible to for a customer to be eligible for payment waivers for different periods of unemployment occurring within the benefit period. Eligible payment waivers do not necessarily have to occur in consecutive months. Please review the IUPW’s Terms & Conditions.

No, the qualifying period will commence on the day the customer becomes involuntarily unemployed. They would be eligible to receive their first monthly waiver payment 31 days after the date of becoming involuntarily unemployed. Accordingly, if the customer is unemployed for less than 30 days, the customer would not be eligible for any payment waivers per the Terms & Conditions.

To file a claim, customers should contact the Administrator at 1-888-778- 9043. The Administrator will send them a welcome package with instructions on how to submit a claim. Our Administrator can also be reached via email at claims@cynosurefinancial.com or mail at PO Box 7690, St. Clair Shores, MI 48080. Hours of operation are Monday – Friday 8:00 am to 8:00 pm EST. Claims are processed Monday – Friday 8:00 am to 5 pm EST. 

Please see the Involuntary Unemployment Payment Waiver Terms & Conditions, under Section D, “Items that You must send to the Administrator:”

Please see the Involuntary Unemployment Payment Waiver Terms & Conditions, under Section D, “Items that You must send to the Administrator:”

Yes. For each month that a customer is eligible for a payment waiver, he/she/they would need to provide documentation verifying they are still receiving unemployment compensation from a state agency. In situations where state benefits have expired, the customer may still be eligible for payment waivers, but will be required to submit the exact same information to the Administrator as would have been required by the state/agency to continue receiving state unemployment benefits.

he maximum payment waiver under the IUPW is $750 per month. If the monthly payment under the RISC is greater than $750, the customer is responsible for paying VCI the difference between the monthly payment and the $750 monthly payment waiver cap.

No, the IUPW is an addendum to the RISC, not the vehicle. The benefits afforded in the IUPW are not transferable to a subsequent purchaser of the vehicle.

This Involuntary Unemployment Payment Waiver (“Waiver”) amends Your Finance Agreement and is being provided for Your benefit by VW Credit, Inc. (“VCI”) at no additional cost to You as a result of Your decision to finance Your purchase of an Eligible Vehicle with VCI. This Waiver is between You and VCI, and is not between the Selling Dealer and You. This Waiver only becomes effective immediately upon the assignment of the Finance Agreement by the Selling Dealer to VCI. VCI has appointed Cynosure Financial, Inc. (“CFI”) solely to administer this Waiver on VCI’s behalf. 

THIS WAIVER WILL NOT BE A FACTOR IN THE PURCHASE PROCESS OR THE CREDIT APPROVAL PROCESS. NEITHER THE EXTENSION OF CREDIT, THE TERMS OF THE CREDIT, NOR THE TERMS OF THE RELATED MOTOR VEHICLE SALE MAY BE CONDITIONED UPON THE PROVISION OF THIS WAIVER. THIS WAIVER IS NOT AN INSURANCE CONTRACT. THIS IS NOT AN AUTOMOBILE LIABILITY OR PHYSICAL DAMAGE INSURANCE POLICY. PLEASE READ THESE TERMS AND CONDITIONS IN THEIR ENTIRETY AS THERE ARE ELIGIBILITY REQUIREMENTS AND LIMITATIONS ON BENEFITS THAT ARE DESCRIBED HEREIN. 

1. Definitions: 

For the purpose of this Waiver the following terms shall mean: 

“Administrator” means CFI. You may contact the Administrator if You have questions regarding this Waiver or would like to initiate a request for a benefit under this Waiver. The Administrator can be reached by phone at 1-888- 778-9043, claims@cynosurefinancial.com, or mail at PO Box 7690, St. Clair Shores, MI 48080. 

“Benefit Period” means the period starting at 12:00:00 a.m. on the Effective Date and ending at 11:59:59 p.m. on the 365th day following the Effective Date. 

“Effective Date” means the date You entered into Your Finance Agreement. 

“Eligible Vehicle” means a new and unused, previously untitled Volkswagen model vehicle purchased through a franchised Volkswagen dealer and financed via a retail installment sales contract with VW Credit, Inc. during the period beginning April 15, 2020, and ending April 30, 2020. Vehicles purchased as part of a fleet transaction, or purchased by: a business, corporation, partnership, utility, federal, state or local government, rental car company or any other organization owning and or operating fifteen (15) or more vehicles are not Eligible Vehicles. Leased vehicles and vehicles purchased and financed on a balloon contract are not eligible. 

“Finance Agreement” means a retail installment sales contract between You and Selling Dealer entered into on the original date of sale of the Eligible Vehicle that evidences the terms and conditions of the vehicle financing, and that 

Benefits: 

Maximum Monthly Waiver Amount: $750.00 

Maximum Number of Payment Waivers: 6 monthly payments 

Maximum Total Waiver Benefit: $4,500.00 

Eligible Vehicle: 

All new and unused, previously untitled Volkswagen model vehicles purchased through a franchised Volkswagen dealer and financed via a retail installment sales contract with VW Credit, Inc. during the period beginning April 15, 2020, and ending April 30, 2020. Vehicles purchased as part of a fleet transaction, or purchased by: a business, corporation, partnership, utility, federal, state or local government, rental car company or any other organization owning and or operating fifteen (15) or more vehicles are not Eligible Vehicles. Leased vehicles, and vehicles purchased and financed on a balloon contract are not eligible. 

Involuntary Unemployment Payment Waiver Terms and Conditions 

Schedule was assigned to and accepted by VCI. This term does not include any agreement that includes a balloon payment or lease agreements. 

“Gainful Employment” means employed for wages, salary, or any other monetary reward in an amount reported on Your W-2. Gainful Employment does not include self-employment income (e.g., reported on Your 1099), barter-for- trade compensation, such as room and board, or any other non-monetary payment. 

“Involuntary Unemployment” means unemployment due to economic reasons, including but not limited to COVID- 19 economic conditions, lockouts, individual and mass layoffs, or loss of employment due to business failure or bankruptcy. The term does not include unemployment due to anything other than economic reasons, including but not limited to, Your medical condition. The term also does not include, as determined in Our sole discretion, Your being (i) laid off as a result of a normal and routine shutdown (i.e., an annual or regularly scheduled event after which You expect to be rehired); or (ii) terminated due to the completion of seasonal or temporary work as determined by Your occupation or place of employment; or (iii) forced to take a temporary leave of absence where You remain employed, or where You have a reduction in the hours You work. 

“Maximum Monthly Waiver Amount” means $750.00 per month. 

“Maximum Number of Payment Waivers” means six (6) payment waivers. Any prorated monthly payments waived shall constitute a single payment for purposes of calculating the Maximum Number of Payment Waivers. 

“Maximum Total Waiver Benefit” means $4,500.00. 

“Payment” means Your regularly scheduled monthly payment, as indicated in Your Finance Agreement, not to include any Payment deferred by Us. 

“Purchaser” means the individual natural person first listed on the Finance Agreement. 

“Selling Dealer” means the franchised Volkswagen dealer that acted as the initial creditor of the Finance Agreement, sold the Eligible Vehicle, and assigned this Finance Agreement to Us. 

“Unemployment Date” means the date of Your Involuntary Unemployment. 

“We”, “Us”, and “Our” refer to VCI. 

“You” and “Your” refer to the purchaser of the Eligible Vehicle, as listed on the Finance Agreement. 

1. Eligibility Requirements to Qualify for Waiver Benefits: 

You are eligible for the benefit(s) set out in Section C below if each and every one of the following requirements are met by You: 

• Your vehicle must be an Eligible Vehicle. 
• Your account reflecting your Finance Agreement has not been closed, cancelled, terminated, refinanced or ended. 
• Your Unemployment Date must occur during the Benefit Period and Your Involuntary Unemployment must continue consecutively without any Gainful Employment. 
• Your Unemployment Date must be more than ninety (90) days after the Effective Date. 
• You must be Involuntarily Unemployed for more than thirty (30) consecutive days. 
• You must have Gainful Employment on a regular full-time basis at least thirty (30) hours per week for at least twelve (12) consecutive weeks immediately prior to Your Unemployment Date. If there is a previous Involuntary Unemployment waiver benefit provided, then You must have Gainful Employment for eight (8) consecutive weeks immediately prior to any new period of Involuntary Unemployment. You must be Involuntarily Unemployed for more than thirty (30) consecutive days in respect of any such new period of Involuntary Unemployment. 
• You must not own more than 10% of Your former employer. 
• You must have had no actual knowledge of any pending Involuntary Unemployment for You prior to the Effective Date. 
• You must have been eligible for resident state, local, or government unemployment benefits during Your period of Involuntary Unemployment. 
• You must have registered with the state unemployment office or the recognized unemployment private or governmental agency within thirty (30) days of Your Unemployment Date. You must be registered during the entire period of Your Involuntary Unemployment. You must receive regular payment for Your Involuntary Unemployment from this office or agency. You must be eligible to receive and continue receiving these benefits for the entire period of Your Involuntary Unemployment. However, in the event You have been paid the maximum amount or number of benefits by the office or agency, You may still be eligible for waiver benefits hereunder if You submit to Us the same information and proof for this unpaid period of time as was required by the office or agency during the period of time for which You were paid benefits by such office or agency. 
• No benefit will be provided upon Your death. 

You are excluded from eligibility for a Waiver benefit if you fail to meet any of the eligibility requirements set forth above, and if: 

• You retire, quit, resign, strike, or voluntarily terminate Your employment for any reason; 
• Your termination of employment is a result of willful misconduct, a transgression of some established and definite rule or law, a forbidden act, a dereliction of duty, where such transgression is willful, improper or wrongful behavior, or unacceptable job performance or behavior; 
• You are receiving termination or severance pay from any employer or have received a lump sum termination or severance payment. In the case of a lump sum payment, Your ineligibility will extend for the period of time, measured in weeks, represented by the number of weeks covered by Your lump sum payment as calculated by dividing Your lump sum payment by Your average weekly gross pay, exclusive of any bonus compensation, using Your gross pay for the most recent full pay period prior to termination or severance; or 
• You are an employee of Volkswagen Group of America, Inc. or any of its affiliates or subsidiaries. 

1. Benefit Amounts and Terms: 

Pursuant to the terms and conditions of this Waiver, while You are eligible under Section B: 

If Your Payment is less than $750.00 per month: 

We will waive the Payment that is actually due to Us for each month during your Involuntary Unemployment (partial periods of eligibility to be prorated per day). 

If Your Payment is greater than or equal to $750.00 per month: 

We will waive up to $750.00 of Your Payment owed to Us for each month during your Involuntary Unemployment (partial periods of eligibility to be prorated per day). 

IMPORTANT: YOU ARE RESPONSIBLE FOR ANY AMOUNTS OWED IN EXCESS OF THE MAXIMUM MONTHLY WAIVER AMOUNT AND THE MAXIMUM TOTAL WAIVER BENEFIT. 

The total number of Payments We will waive under this Waiver shall not exceed the Maximum Number of Payment Waivers. 

The total sum of all Payments We will waive under this Waiver shall not exceed the Maximum Total Waiver Benefit. 

Benefits provided under this Waiver may extend beyond the Benefit Period as long as Your Unemployment Date occurs within the Benefit Period and you remain eligible for benefits under the terms of this Waiver. 

1. When and How to Request Waiver Benefit(s): 

When to Notify Administrator of Your Involuntary Unemployment: 

You must notify the Administrator of Your Involuntary Unemployment as soon as reasonably possible, but in no case later than sixty (60) days from Your Unemployment Date. 

How to Notify Administrator of Involuntary Unemployment and submit a Request for benefit: 

Contact the Administrator at 1-888-778-9043 or claims@cynosurefinancial.com. Upon contacting Our Administrator and confirmation by You of Your Involuntary Unemployment, We will begin the benefits process pursuant to the terms of this Waiver and, pending Our claims review, immediately suspend Your monthly payments pursuant to the maximum amounts set forth herein. Subsequent to Your confirmation, the Administrator will direct You on how to obtain a waiver benefit claim form or will provide one to You. The following required items listed below must be sent to the Administrator at Involuntary Unemployment Payment Waiver c/o cynoSure Financial, Inc., PO Box 7690, St. Clair Shores, MI 48080 or claims@cynosurefinancial.com and be postmarked within ninety (90) days of Your Unemployment Date, or as soon as reasonably, possible but in no event later than six (6) months from the Unemployment Date, or your request for a benefit will not qualify. 

Items that You must send to the Administrator: 

1. The fully completed and signed waiver benefit claim form. 
2. Verification that You have registered with a state unemployment office or recognized private or governmental agency and that You are receiving benefits from that office or agency. In the event You have been paid the maximum amount or number of benefits by this office or agency, then to be eligible for any further waiver benefits hereunder for the period You were not paid by this office or agency, We require that You submit to Us the same information and proof for this unpaid period of time as was required by this office or agency for their payment to You. 
3. A signed letter, on employer letterhead, from Your former employer verifying Your Unemployment Date, the reason for Your unemployment, the length and amount of any severance pay received, as well as verification of Your length of employment, and confirmation that You worked on a regular full-time basis at least thirty (30) hours per week immediately prior to Your Unemployment Date. 
4. To assist with expediting the processing of a benefit, We may request that You provide to Our Administrator a copy of Your billing statement which identifies the Finance Agreement number, billing cycle, Payment address, Payment amount due, and Payment due date, including any documentation showing Payment deferral dates, if applicable. 
5. To assist with expediting the processing of a benefit, We may request that You provide to Our Administrator a copy of your vehicle Finance Agreement showing You as the top line signer.

6. Should You become Involuntarily Unemployed as a result of a lockout, You must provide Us with continuing proof that Your Involuntary Unemployment is due to the lockout.

7. Any other documentation that the Administrator may reasonably request at any time to help determine 

Your eligibility under this Waiver. 

IMPORTANT: Benefits may be processed under this waiver based upon certain representations made by You to Our Administrator. However, if it is determined in our sole discretion that You were not entitled to a waiver benefit under the terms of this Waiver (or any portion thereof), You hereby acknowledge and agree that You will be responsible for any monthly payments (or any portion thereof) suspended hereunder pending our claims review process pursuant to Your representations. 

How We Protect Your Sensitive Information 

The information You send to Us or Our Administrator is subject to all of Our and the Administrator’s policies and procedures, including but not limited to data protection and confidentiality policies and processes. Please see the attached Privacy Policy for details. 

Contact the Administrator with Questions: 

You may contact Administrator if You have questions regarding this Waiver or would like to activate the waiver benefit. No Third Party Has Any Rights Under This Agreement. This Agreement shall not be construed to create, or give rise to, any rights against Us for any Creditor or third party. 

1. Other Terms: 

Misrepresentation and Fraud: A waiver benefit may be denied if You conceal or misrepresent any material fact or circumstance concerning Your Involuntary Unemployment or Your period of Involuntary Unemployment. 

Not Transferable: You may not assign or transfer this Waiver. The rights under this Waiver are not transferable to any subsequent purchaser or lessee or any other person or entity to whom the vehicle that is the subject of this Waiver is conveyed by operation of law or otherwise; including, without limitation, through repossession, death, or as a gift. 

Tax Implications: You may be subject to federal, state, or local tax on any Payment(s) which We may waive.