Reading Time: 2 minutes

A Big Expensive Car

When Gauteng resident Andrea Aahnisah Hoskins bought a BMW 218i on credit, she committed to R11,000 monthly payments.

At the time, the credit provider felt confident she could afford the repayments.

But after just six months, financial trouble forced her to default. She tried to sort things out with BMW Financial Services, but unfortunately was not able to come to a suitable arrangement.

The matter eventually went to High Court as BMW tried to recover their debt and the asset (car). Hoskins didn’t formally defend the case at court and with no defence submitted, the court granted a default judgment in April 2024, allowing BMW to repossess the vehicle.

Raising Reckless

Hoskins kept the car for a while longer and at this time turned to the National Credit Regulator (NCR) and from there on to the National Consumer Tribunal (NCT), claiming that BMW were guilty of reckless lending setting her up for failure.

Reckless lending is when a consumer is given credit without been given all the right documents or does not understand what is expected of them or cannot afford to actually repay the credit.

If credit is granted recklessly then it can be written off or payments can be delayed.

It Had Already Been To Court

First the NCR and then later the Tribunal said that unfortunately, they couldn’t undo or overrule what a competent court had already decided on.

Even though Hoskins said BMW didn’t properly assess her ability to repay the loan, her claims ultimately couldn’t even be heard because she hadn’t raised them at the right time, which was during the original High Court proceedings.

A Lesson For All

This case highlights a critical lesson: if you are being taken to court over an unpaid debt, you must respond and defend yourself.

Do not ignore it.

Once a competent court rules on a matter, it’s nearly impossible to reverse it and here we see that the NCR and NCT cannot take action. Whether you believe the lender acted unfairly or you need help restructuring your debt, don’t stay silent.

So, if you ever get a scary section 129 letter or court summons, speak to a Debt Counsellor or attorney right away and make sure your side of the story is heard otherwise you might be too late.