BMW to contest regulator ruling on readiness fee
BMW Financial Services insists ‘on the road’ fee was agreed between the dealer and the consumer
BMW Financial Services (SA) intends to challenge the compliance notice issued this week by the National Credit Regulator (NCR) because the company charges consumers an "on the road" fee on credit agreements. The NCR argued that the National Credit Act did not allow such a fee to be charged on credit agreements, but BMW Financial Services insisted the fee was agreed between the dealer and the consumer. The company provides vehicle finance to buyers of BMW vehicles and the "on the road" fee refers to those services provided to get the vehicle ready for road use such as vehicle registration, licence plates, petrol and delivery. The NCR’s compliance notice against BMW Financial Services follows similar action it has taken against retailers who charge account holders a monthly fee for membership of a club entitling them to discounts and perks. The NCR has ruled that the club fee charged by Edcon was unlawful. NCR enforcement manager Jacqueline Peters said the compliance notice against th...