Credit regulator orders Volkswagen SA to refund customers
Volkswagen South Africa will have to refund its customers.
The National Credit Regulator (NCR) says the German carmaker will have to refund customers "on-the-road fees" and other charges added to its vehicle finance agreements.
The NCR has issued Volkswagen Financial Services South Africa (Pty) Ltd a compliance notice for charging consumers an on the road fee, 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 Compliance Notice instructs the company to refund consumers and submit an audit report to the NCR.
NCR CEO Nomsa Motshegare says: "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."
She says the NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged.
It is a criminal offence to charge consumers fees and charges that are prohibited by the National Credit Amendment Act of March 2014.