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.
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, email@example.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
Maximum Monthly Waiver Amount: $750.00
Maximum Number of Payment Waivers: 6 monthly payments
Maximum Total Waiver Benefit: $4,500.00
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.
- 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.
- 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.
- 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 firstname.lastname@example.org. 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 email@example.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:
- The fully completed and signed waiver benefit claim form.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
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.
- 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.