JOHANNESBURG, Gauteng – The National Credit Regulator has ordered VW Financial Services SA to refund illegal charges made on customers before vehicle delivery.
An NCR tribunal has found against VW, saying the charges for ”on road fee”, administration and handling were unlawful on credit sale agreements as they were not permitted by the National Credit Act.
The Tribunal ordered Volkswagen Financial Services to:
- Cease the practice and/or conduct of charging consumers the fees on credit agreements from April 10 2019 and to submit written confirmation to the NCR
- Calculate the total amount of charges, fees or interest and refund them
- Report that this has been done by independent auditors and submit such report to the NCR
Nomsa Motshegare, the NCR’s chief executive officer, told The Corner in a media release: “We welcome this judgment as it affirms the protection given to consumers by the National Credit Act against illegal charges and fees on credit agreements.”
The NCR will continue to conduct industry-wide investigations on such fees and charges on credit agreements to root out illegal charges and fees on credit agreements.
A windfall indeed for vehicle buyers across South Africa and indeed The Corner has asked VW for more information on what refunds owners might expect and whether they will be retrospective.
A spokesman did make clear, however, that the finance company and the vehicle retailers are separate companies.
A request to the finance house for comment attracted a reply on Tuesday morning saying: ”Volkswagen Financial Services South Africa is reviewing the ruling and obtaining legal advice.
”We shall revert in due course.”