Pawn Your Car Schemes In The NCR’s Crosshairs
Google pawn your car and you will quickly find many adverts for several service providers who are seemingly breaking the law. This appears to be the case, following a legal battle in May 2017 between the NCR and Allied Capital in regard to their pawn but still drive your car scheme.
In that case, the National Consumer Tribunal (NCT) ruled against Allied Capital and ordered them to give everyone their money back (and their cars back). They held that these deals are actually just loans and thus need to be dealt with according to the rules of the National Credit Act.
Since so many consumers have been involved over the years, this will take some time and naturally will spell the end of the brand. Overnight the adverts for Allied Capital all received new stickers over the branding leaving the old wording of their adverts the same but promoting a new brand/logo.
Carpawnloan.co.za | Pawn.co.za
Now the NCR has moved on to Sun Finance South Africa (who run sites like pawn.co.za) and are taking them to the National Consumer Tribunal in regard to the same matter. This is the next in a series of investigations that the NCR is running in regard to pawn brokers.