VW Auto Loan Trust 2024-1 Details Trustee Legal Battles in 10-K

TL;DR

**This 10-K reveals significant, ongoing RMBS litigation against the Trust's key fiduciaries, Deutsche Bank and U.S. Bank, posing an indirect but material risk to investors in Volkswagen's auto loan-backed securities.**

AI Summary

The Volkswagen Auto Loan Enhanced Trust 2024-1, a securitization entity, filed its 10-K for the fiscal year ended December 31, 2025, on March 26, 2026. This filing primarily details compliance with servicing criteria and ongoing legal proceedings affecting its trustees, rather than traditional financial performance metrics like revenue or net income, which are omitted per General Instruction J(1) to Form 10-K. VW Credit, Inc., as Servicer, and U.S. Bank Trust Company, National Association, as Indenture Trustee, both submitted Servicing Assessment Reports and Attestation Reports, with no material noncompliance identified for either party. However, the Owner Trustee, Deutsche Bank Trust Company Delaware, and the Indenture Trustee, U.S. Bank N.A., are involved in significant, long-running residential mortgage-backed securities (RMBS) litigation, with potential liabilities for U.S. Bank N.A. exceeding $268 million in one case. These legal risks, while not directly impacting the Trust's auto loan pool, could affect the trustees' ability to perform their duties, although both trustees assert their ability to continue performing. The Trust itself is not a well-known seasoned issuer and has no registered securities under Section 12(b) or 12(g) of the Securities Exchange Act.

Why It Matters

This 10-K for Volkswagen Auto Loan Enhanced Trust 2024-1 is crucial for investors in its asset-backed notes and certificates, as it highlights significant legal risks faced by its key fiduciaries, Deutsche Bank Trust Company Delaware and U.S. Bank N.A. While the Trust's auto loan pool itself is not directly implicated in the RMBS litigation, the ongoing lawsuits, some involving hundreds of millions of dollars, could strain the trustees' resources and potentially impact their operational stability or reputation. This competitive context is vital for investors assessing the long-term health and oversight of their securitized assets, as trustee performance is paramount for investor protection and the efficient functioning of the broader asset-backed securities market.

Risk Assessment

Risk Level: medium — The risk level is medium due to the extensive, ongoing legal proceedings against the Owner Trustee (Deutsche Bank Trust Company Delaware) and the Indenture Trustee (U.S. Bank N.A.) related to residential mortgage-backed securities. While these lawsuits do not directly involve the Volkswagen Auto Loan Enhanced Trust 2024-1's assets, the potential liabilities, such as the over $268 million claimed against U.S. Bank N.A. in the IKB litigation, could impact the trustees' financial stability and ability to perform their duties, creating indirect risk for the Trust's noteholders.

Analyst Insight

Investors should closely monitor the progress and outcomes of the RMBS litigation involving Deutsche Bank Trust Company Delaware and U.S. Bank N.A. While both trustees assert their ability to perform, any adverse judgments or significant financial strain could necessitate a review of the Trust's governance and potential impact on asset servicing. Consider the implications for trustee replacement or heightened oversight if these legal challenges escalate.

Key Numbers

• $268 million — Alleged damages against DBNTC and DBTCA by IKB (Represents potential liability for the Owner Trustee in RMBS litigation.)
• 2025 — Fiscal year ended (The period covered by this annual report.)
• 2026-03-26 — Filing date (Date the 10-K was filed with the SEC.)
• 0002043149 — Central Index Key Number of Issuing Entity (Unique identifier for Volkswagen Auto Loan Enhanced Trust 2024-1.)
• 0000833733 — Central Index Key Number of Securitizer (Unique identifier for VW Credit, Inc.)

Key Players & Entities

• Volkswagen Auto Loan Enhanced Trust 2024-1 (company) — Issuing Entity
• VW Credit, Inc. (company) — Sponsor, Originator, Servicer, and Administrator
• Volkswagen Auto Lease/Loan Underwritten Funding, LLC (company) — Depositor
• U.S. Bank Trust Company, National Association (company) — Indenture Trustee
• Deutsche Bank Trust Company Delaware (company) — Owner Trustee
• Garett Miles (person) — Head of Securitization and Assistant Treasurer of VW Credit, Inc.
• Commerzbank AG (company) — Plaintiff in RMBS litigation against Deutsche Bank
• IKB International, S.A. in Liquidation (company) — Plaintiff in RMBS litigation against Deutsche Bank and U.S. Bank
• $268 million (dollar_amount) — Damages alleged against DBNTC and DBTCA by IKB
• December 31, 2025 (date) — Fiscal year end for the 10-K

FAQ

Risk Factors

• RMBS Litigation Involving Trustees [high — legal]: The Owner Trustee (Deutsche Bank Trust Company Delaware) and the Indenture Trustee (U.S. Bank N.A.) are involved in significant residential mortgage-backed securities (RMBS) litigation. U.S. Bank N.A. faces potential liabilities exceeding $268 million in one case, which could impact its ability to perform its duties for the Trust.
• Trustee Performance Capability [medium — operational]: While both the Owner Trustee and Indenture Trustee assert their ability to continue performing their duties, the substantial RMBS litigation poses a potential operational risk. Any adverse outcome or strain on these entities could indirectly affect the administration of the Volkswagen Auto Loan Enhanced Trust 2024-1.
• Servicing Criteria Compliance [low — regulatory]: The Trust filed Servicing Assessment Reports and Attestation Reports from both the Servicer (VW Credit, Inc.) and the Indenture Trustee. No material noncompliance was identified for either party, indicating adherence to established servicing standards for the fiscal year ended December 31, 2025.

Industry Context

The auto loan securitization market is a significant component of the broader asset-backed securities (ABS) market. Issuers like Volkswagen Financial Services leverage these structures to provide financing and manage their balance sheets. The market is sensitive to credit quality of underlying loans, interest rate movements, and overall economic conditions affecting auto sales and consumer repayment ability.

Regulatory Implications

The filing emphasizes compliance with servicing criteria, a key regulatory requirement for securitization trusts. The involvement of trustees in unrelated, large-scale litigation highlights potential indirect regulatory scrutiny or operational risks that could arise if trustee performance is compromised.

What Investors Should Do

1. Monitor litigation involving U.S. Bank N.A. and Deutsche Bank Trust Company Delaware.
2. Review the Servicing Assessment and Attestation Reports for any nuances.

Key Dates

• 2025-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2026-03-26: 10-K Filing Date — The date the annual report was submitted to the SEC, providing updated information on the Trust's status.

Glossary

Securitization Entity

A legal entity created to pool assets (like auto loans) and issue securities backed by the cash flows from those assets. (Volkswagen Auto Loan Enhanced Trust 2024-1 is structured as a securitization entity.)

Servicing Criteria

A set of standards and requirements that a servicer must meet in managing the assets underlying a securitization trust. (The 10-K includes reports on compliance with these criteria by the Servicer and Indenture Trustee.)

Indenture Trustee

A trustee appointed to represent the interests of bondholders in a debt issuance, ensuring the issuer complies with the terms of the indenture agreement. (U.S. Bank Trust Company, National Association serves as the Indenture Trustee for this Trust and is involved in significant litigation.)

Owner Trustee

A trustee responsible for holding the assets of the trust for the benefit of the certificate holders. (Deutsche Bank Trust Company Delaware is the Owner Trustee and is also involved in RMBS litigation.)

RMBS

Residential Mortgage-Backed Securities, which are mortgage loans or pools of mortgage loans that have been securitized and sold to investors. (The litigation involving the Trust's trustees pertains to RMBS, not the auto loans held by this specific Trust.)

Year-Over-Year Comparison

As this is the first 10-K filing for Volkswagen Auto Loan Enhanced Trust 2024-1, a direct comparison of financial metrics to a prior year is not applicable. The focus of this filing is on the servicing compliance for the fiscal year ended December 31, 2025, and the disclosure of significant legal proceedings involving the Trust's key fiduciaries.

Key Financial Figures

• $268 million — BNTC and DBTCA are liable for over U.S. $268 million in damages. On October 5, 2016, DBNTC a

Filing Documents

• tm261240d4_10k.htm (10-K) — 63KB
• tm261240d4_ex31-1.htm (EX-31.1) — 8KB
• tm261240d4_ex33-1.htm (EX-33.1) — 49KB
• tm261240d4_ex33-2.htm (EX-33.2) — 46KB
• tm261240d4_ex34-1.htm (EX-34.1) — 9KB
• tm261240d4_ex34-2.htm (EX-34.2) — 6KB
• tm261240d4_ex35-1.htm (EX-35.1) — 5KB
• image_001.jpg (GRAPHIC) — 10KB
• tm261240d4_ex34-1img001.jpg (GRAPHIC) — 10KB
• tm261240d4_ex34-2img002.jpg (GRAPHIC) — 9KB
• tm261240d4_ex34-2img001.jpg (GRAPHIC) — 2KB
• 0001104659-26-035008.txt ( ) — 231KB

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. Not Applicable.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. Not Applicable. PART II THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH GENERAL INSTRUCTION J(1) TO FORM 10-K: (A) Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. (B) Item 6 [Reserved] (C) Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations. (D) Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. (E) Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. (F) Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. (G) Item 9A

Controls and Procedures

Controls and Procedures.

Other Information

Item 9B. Other Information. None.

Disclosure Regarding Foreign Jurisdictions that Prevent

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not Applicable. PART III THE FOLLOWING ITEMS HAVE BEEN OMITTED IN ACCORDANCE WITH GENERAL INSTRUCTION J(1) TO FORM 10-K: (A) Item 10 Directors, Executive Officers and Corporate Governance. (B) Item 11

Executive Compensation

Executive Compensation. (C) Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. (D) Item 13 Certain Relationships and Related Transactions, and Director Independence. (E) Item 14 Principal Accountant Fees and Services. PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. (a) (1) Not applicable. (2) Not applicable. (3) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index. (b) The exhibits filed in response to Item 601 of Regulation S-K are listed in the Exhibit Index. (c) None.

Form 10-K Summary

Item 16. Form 10-K Summary. Not Applicable. SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J(2) TO FORM 10-K:

(b) of Regulation AB. Significant Obligors of Pool Assets

Item 1112(b) of Regulation AB. Significant Obligors of Pool Assets (Financial Information). Not Applicable.

(b)(2) of Regulation AB. Credit Enhancement and Other Support,

Item 1114(b)(2) of Regulation AB. Credit Enhancement and Other Support, Except for Certain Derivatives Instruments (Information Regarding Significant Enhancement Providers). Not Applicable.

(b) of Regulation AB. Certain Derivatives Instruments (Financial

Item 1115(b) of Regulation AB. Certain Derivatives Instruments (Financial Information). Not Applicable.

of Regulation AB. Legal Proceedings

Item 1117 of Regulation AB. Legal Proceedings. Except as described below, no legal proceedings are pending against any of VW Credit, Inc. (in its capacity as the sponsor (the “Sponsor”), in its capacity as an originator contemplated by Item 1110(b) of Regulation AB (the “Originator”), in its capacity as servicer (the “Servicer”) and in its capacity as administrator of Volkswagen Auto Loan Enhanced Trust 2024-1 (the “Issuing Entity”)), Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the “Depositor”), U.S. Bank Trust Company, National Association (the “Indenture Trustee”), Deutsche Bank Trust Company Delaware (the “Owner Trustee”), or the Issuing Entity or of which any property of the foregoing is the subject that are or would be material to holders of the asset-backed notes (the “Notes”) or the asset-backed certificate (the “Certificate”). No such proceedings are known to be contemplated by governmental authorities. VW Credit and its affiliates are parties to, or are periodically otherwise involved in, reviews, investigations, and proceedings (both formal and informal), and information gathering requests by various federal, state and local government authorities. Deutsche Bank Trust Company Delaware, as the Owner Trustee, has provided the following information for inclusion in this report on Form 10-K: In 2014 and 2015, several investors sued several trustees of residential mortgage-backed securities (“RMBS”) trusts, including Deutsche Bank Trust Company Americas (“DBTCA”), concerning the trustees’ administration of RMBS trusts. These cases generally alleged that the RMBS trustees failed to perform purported duties, as trustees for private-label RMBS trusts, to enforce breaches of representations and warranties as to mortgage loans held by the trusts and to enforce breaches by servicers of thei

of Regulation AB. Affiliations and Certain Relationships

Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions. Information required by Item 1119 of Regulation AB has been omitted from this report on Form 10-K in reliance on the Instruction to Item 1119.

of Regulation AB. Compliance with Applicable Servicing

Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria. The Servicer and the Indenture Trustee (collectively, the “Servicing Parties”) have each been identified by the Depositor as parties participating in the servicing function with respect to the asset pool held by the Issuing Entity. Each of the Servicing Parties has completed a report on an assessment of compliance with the servicing criteria set forth in paragraph (d) of Item 1122 of Regulation AB applicable to it (each, a “Servicing Assessment Report”), which Servicing Assessment Reports are attached as exhibits to this Form 10-K. In addition, each of the Servicer and the Indenture Trustee has provided an attestation report (each, an “Attestation Report”) by a registered public accounting firm, which reports are also attached as exhibits to this Form 10-K. Neither the Indenture Trustee’s Servicing Assessment Report nor the Indenture Trustee’s Attestation Report has identified any material instance of noncompliance with the servicing criteria applicable to the Indenture Trustee. The Servicer complied in all material respects with the servicing criteria applicable to it.

of Regulation AB. Servicer Compliance Statement

Item 1123 of Regulation AB. Servicer Compliance Statement. The Servicer has completed a statement of compliance with its activities during the reporting period and of its performance under the applicable servicing agreement (a “Compliance Statement”), signed by an authorized officer of the Servicer. The Compliance Statement is attached as Exhibit 35.1 to this Form 10-K. EXHIBIT INDEX Exhibit 31.1 Certification of Senior Officer in Charge of the Servicing Function of the Servicer Pursuant to Rule 15d-14(d). Exhibit 33.1 Report on Assessment of Compliance with Applicable Servicing Criteria of VW Credit, Inc. Exhibit 33.2 Report on Assessment of Compliance with the Servicing Criteria of U.S. Bank Trust Company, National Association Exhibit 34.1 Attestation Report on Assessment of Compliance with the Servicing Criteria of Baker Tilly US, LLP, on behalf of VW Credit, Inc. Exhibit 34.2 Attestation Report on Assessment of Compliance with the Servicing Criteria of Ernst & Young LLP, on behalf of U.S. Bank Trust Company, National Association Exhibit 35.1 Annual Servicer Compliance Statement of the Servicer for the year ended December 31, 2025.

SIGNATURES

SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Depositor has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. March 26, 2026 VOLKSWAGEN AUTO LOAN ENHANCED TRUST 2024-1 By: VW Credit, Inc., as Servicer By: /s/ Garett Miles Garett Miles Head of Securitization and Assistant Treasurer (senior officer in charge of the servicing function)

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