(Bloomberg) -- Volkswagen AG, reeling from an expanding scandalinvolving diesel cars it has admitted it rigged to pass U.S.pollution tests, announced Monday that owners of the vehicles willreceive $1,000 in what the company calls a “goodwill” gesture.

VW is offering owners of diesel-powered cars with 2.0-literengines under investigation by the U.S. Environmental ProtectionAgency, $500 on a prepaid Visa card, $500 in dealership credits andthree years of free roadside assistance.

Volkswagen has been struggling to contain customer anger sincethe EPA announced the company’s smaller diesel cars since 2009 havetechnology installed to rig emissions tests. VW dealers have alsogotten extra payments and incentives for selling gasoline-poweredcars as diesel models can’t be sold.

“We are working tirelessly to develop an approved remedy foraffected vehicles,” Michael Horn, Volkswagen Group of America’spresident and chief executive officer, said in an e- mail. “In themeantime, we are providing this goodwill package as a first steptowards regaining our customers’ trust.”

Register online

Consumers who want to sign up for the loyalty program can verifyeligibility by going to www.vwdieselinfo.com. Once registering, a goodwillpackage will be mailed within four weeks, and then customers canpick up payment cards at an authorized dealer.

Two Democratic U.S. senators who have been critical ofVolkswagen called the payments “insultingly inadequate.” VW needsto fully cooperate with federal criminal and civil investigationsthat may provide more redress to taxpayers and car owners, RichardBlumenthal of Connecticut and Edward Markey of Massachusetts saidin a statement.

“It should offer every owner who wants to keep her car fullcompensation for the loss of resale value, fuel economy and otherdamage caused by its purposeful deception,” the senators said. “Thecompany needs to get serious.”

Consumers don’t need to release any legal claims in order toreceive the goodwill package, VW spokeswoman Jeannine Ginivansaid.

Fine print

However, Robert Hilliard, an attorney representing hundreds ofowners of diesel cars covered by the EPA investigation, cautionedthat consumers signing up for payments should be mindful of anyfine print that would agree to arbitration instead of litigation.State laws can allow the refund of the entire purchase price, andjury awards can be tripled if defendants are proven to have actualknowledge of bad conduct, he said.

“Volkswagen customers are very sophisticated and will see theselittle gift cards for what they are -- much too little, much toolate,” Hilliard said.

The Wolfsburg, Germany-based automaker announced the program inan e-mail today.

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