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Volkswagen Financial Services SA to challenge NCR

Oct 26 2017 13:19
Carin Smith

Cape Town - Volkswagen Financial Services SA is in the process of lodging an objection against a compliance notice issued by the National Credit Regulator (NCR).

Volkswagen Financial Services SA - a separate entity from Volkswagen SA - said it will request a review of the compliance notice. It holds a different view from the NCR on the legal interpretation of the applicable provisions of the National Credit Act.

The NCR issued a compliance notice for charging consumers an on-the-road admin fee and handling fee on credit agreements.

These fees are not permitted to be charged on credit agreements by the National Credit Act, the NCR said earlier this week.  
 
The compliance notice instructs Volkswagen Financial Services SA to refund consumers and submit an audit report to the NCR.
 
“The National Credit Act allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements. Consumers should request this quotation from their credit providers so that they can properly check the cost of credit that is being offered,” NCR CEO Nomsa Motshegare said in a statement.
 
The NCR said it will continue to conduct industry-wide investigations on the cost of credit "to root out illegal charges and fees" that consumers are charged.
 
It reminded credit providers that it is a criminal offence to charge consumers fees and charges that are prohibited by the National Credit Amendment Act of March 2014.

Volkswagen SA told Fin24 on Tuesday that it was aware of the compliance notice served on Volkswagen Financial Services by the NCR.

Because Volkswagen Financial Services is a separate legal entity, Volkswagen SA is not in a position to respond to a compliance notice issued on a separate company over which it has no influence.

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ncr  |  credit  |  money  |  auto industry
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