Nothing is sweeter than knowing you can still get lots of money from a particular car you have been driving for a long period of time. That feeling is enough to give car owner Goosebumps. By indication, this is going to be a very bad news for the concerned automakers at all fronts. So, if you are a South African resident and you own any of the Volkswagen model since 2007, you have just found yourself a real lottery card. Let’s take a quick look at the summary of the event by Business insider SA on the exciting news for South African Volkswagen car owners and worrisome news for the German automaker, Volkswagen:
Volkswagen Financial Services SA has been ordered to pay back fees it has been levying on sale contracts since 2007.
Car owners, who bought their vehicles through Volkswagen Financial Services, can lodge a complaint with the National Credit Regulator to ensure they get their money back.
Volkswagen is obtaining legal advice, however.
However, we didn’t expect it to be easy though since the company has thousands of lawyers at its beckon.
Recently, the National Credit Tribunal has given an order to Volkswagen Financial services SA to pay all affected customers illegal fee, which over the past 12 years have been levied against them. These mentioned OTR fees which is known as “on the road charges” as well as administrative levy and fee from the handling were all included to make up the financial cost of these cars. This according to the terms of the National Credit Act, were not allowed.
>>> Reviews and prices in Nigeria of Volkswagen products:
You sure have a lot of accrued interest to get if you bought your VW car in 2007
This new ruling in SA will cover all the credited agreements entered by the Financial Services since June 2007. According to a statement from Lebogang Selibi, who is the spokesperson for National Credit Regulator (NCR), he told Business Insider SA that Volkswagen car owners who purchased through banks and several other financial institutions would not be affected by this new development.
In a report from the Autotrader, the illegal fee would include:
- The cost of pre-delivery inspection/safety check
- The cost of a Certificate of Roadworthiness
- Delivery fuel (The fuel inside the tank when you drive away with the new car)
- Initial fuel (The fuel in the car’s tank while it was still on the floor, for test driving purposes.)
- The cost of a clearance certificate (to ensure that the car is free of outstanding debt, and hasn't been in a serious accident. )
- Licensing and registration costs
- Cleaning or valet costs.
The estimates of these fees would reach up to four thousand rand per vehicle. This amount was part of the vehicle finance agreement and accumulated interest for the past years.
The NCR ordered the financial services from two German automakers, BMW and Volkswagen to repay these fees in 2007. Volkswagen however appealed by taking the case to the higher court, which was the National Credit Tribunal. This court subsequently Tuesday was found against it and ordered the financial services from Volkswagen to stop charging the fee. This occurred last Wednesday
The company was however ordered to repay all the levied fees and accrued interest on them to their customers. After which a report must be submitted by the independent auditors to the NCR.
2015 Volkswagen Group - Uitenhage South Africa Plant
If you purchased your car through the VW Financial Services, you have the right to lodge a formal complaint to the NCR. According to Selibi, the NCR will make sure it keeps a record and make sure that the audit covers all customers when conducted.
The spokesperson of the Volkswagen Financial Services in a recent statement made to the Business Insider SA, said the company is currently obtaining legal advice.
>>> For prices of Volkswagen cars, check out: Volkswagen price in Nigeria - German efficiency
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