NCR Weigh in on R699 Vehicle Adverts
The NCR get involved in R699 vehicle Saga
The National Credit Regulator (NCR) have issued a Compliance Notice to the entity operating the R699 vehicle scheme. The company, Satinsky 128 (Pty) Ltd recently stopped paying consumers to advertise their new car sales from R699.00. The NCR say they are not happy with the content of these adverts which were displayed on the cars since the National Credit Act (NCA) regulates advertisements for credit and say that there is minimum content that must be disclosed when credit is advertised to consumer. It seems Satinsky failed to meet these standards.
The Problems
One big problem is that the advert by Satinsky only discloses the possible monthly instalment of R699 . The NCA actually requires that if an advert shows the monthly instalment amount , it must also say how many instalments there will be, the total amount of all the instalments added up (including things like interest, fees & insurance), interest rate % charged and if there is any residual or a final amount payable. Since these are normally cars with limited space and not huge trucks this info has not been shown (even in small print).
Problems on the website too
The company website also contains a statement that consumers will pay a reasonable interest rate but has not got the other required info or further details.
What’s in the Compliance Notice and Why?
The notice issued to Satinsky requires them to submit a proper audit report to the NCR confirming that its advertisements for credit comply with the NCA.
Ms Nomsa Motshegare, Chief Executive Officer of the NCR says:“The audit report will provide assurance that all advertisements appearing on vehicles are in compliance with the provisions of the NCA,” …“Satinsky has an opportunity to bring its credit marketing practices in line with the provisions of the NCA, however, should it fail to do so, the NCR will approach the National Consumer Tribunal for stringent orders which may include an administrative fine,” says Motshegare.
Since the entire scheme seems to have run out of steam and the company seems to no longer be able to compensate consumers (with money each month) this may be a bit too late or it may be the nail in the entire schemes coffin.
The NCR have announced that they are now also investigating the Satinsky’s R699 vehicle scheme for other possible contraventions of the NCA. There have been some allegations (unproven at this point) that there may have been reckless credit granting involved in some consumers cases.
Ms. Motshegare says that: “The purpose of the investigation is to establish if vehicle owners were granted credit in accordance with the NCA. This is a separate issue from the credit advertisements appearing on the vehicles,” .