NCR Issue Compliance Notice to BMW Finance
The National Credit Regulator has sent BMW Finance a compliance notice over their “on the road” fees
A compliance notice is a scary document from the NCR telling a Credit Provider to change something or face possible action at the National Consumer Tribunal (NCT) which can result in big fines.
“On the road” fees basically cover having the dealer get the car registration and license plates taken care of so that the consumer does not have to handle that. The new car owner can just hop in the car and be on the road. Sometimes there are other facets to the fee (like a tank of petrol) that might also be included.
These fees can amount to a lot of money. Anywhere from R2500 to R5000 or more depending on the dealer. Alternatively, registration and obtaining of new plates can be done by the consumer if they do not wish to pay this fee.
Can They Be Included In The Cost Of Credit?
The NCR have told BMW Finance to stop including these fees in the cost of credit to the consumer since the National Credit Act does not make allowance for them. They have gone further and said the Credit Provider had better refund affected consumers who have been charged financing fees on these costs.
The NCR have demanded that BMW Finance do an internal audit and provide figures about consumer affected and the subsequent refunds that will be done.
The NCR have said that they will be conducting an industry wide investigation into these fees and plan to ‘root out’ illegal charges and fees that consumers should not have to pay.
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