NCR Investigate Sales Prices of Assets Sold on Auction
The NCR have launched an investigation into various credit providers (including the big banks) in regard to the prices they get for vehicles sold on auction. They are particularly interested in the resulting shortfalls that arise when the assets are sold for less than the assets value or the projected value of the asset.
Property Sold on Auction Despite Buyer Waiting
One consumer recently told the tale of how one of his properties was sold for R500 000 less, on auction, than an offer he had lined up with the bank. Though they had this existing offer in writing and the sale was then ready to go ahead they proceeded with an auction sale and sold the property for R500 000 less than the offer the consumer had already organised. This left the consumer with a huge shortfall which he was then liable to pay the bank. It is matters like this which worry the NCR. The NCR are also intent that the assets should not only be sold for a reasonable amount but that they be sold within a reasonable period of time.
“Credit providers should ensure that they sell consumers’ repossessed motor vehicles and houses as soon as reasonably practicable or for the best price reasonably obtainable so that consumers are not liable to pay shortfalls that are substantially high. This is an issue of serious concern to the NCR“, says NCR CEO Nomsa Motshegare