NCR Issue Volkswagen Financial Services A Compliance Notice
Recently the National Credit Regulator (NCR) issued BMW Financial Services with a warning Compliance Notice demanding that they refund consumers with “on the road” fees charged over the last decade. They then warned that they would be rolling out the campaign to other vehicle finance credit providers.
VW In the Crosshairs
Now the NCR have issued Volkswagen Financial Services with a compliance notice saying that “on the road” fees are not permitted under the National Credit Act (NCA) and that the credit provider is to stop adding these fees to their financial agreements. They have also demanded that VW Financial Services do an internal audit and figure out who should be refunded and how much.
BMW Financial Services have said that they are not in agreement with the NCR’s interpretation of what these fees are and how they form part of the credit agreement with consumers. They are currently trying to engage with the NCR over this matter which involves many millions of Rands over the years since the NCA came into effect in 2007. It is likely that VW Financial Services will follow suit in trying to argue this point with the NCR.
If a registrant does not listen to a Compliance Notice then the NCR can (and probably will) take that registrant to the National Consumer Tribunal to try to force them to do so and to possibly issue fines for breaching the requirements of the NCA.
The NCR have said they will soon be issuing other vehicle finance firms with similar Compliance Notices.