VW Financial Services ordered to refund customers for illegal fees
The National Consumer Tribunal has ruled that the company charged on-the-road, administration and handling service fees in contravention of the National Credit Act
In a first ruling of its kind, the National Consumer Tribunal has instructed Volkswagen Financial Services to refund, with interest, customers it charged for on-the-road, administration and handling service fees since 2007. The ruling, which was handed down last Thursday by the tribunal, puts the spotlight on the legality of the installment agreements that consumers sign prior to taking delivery of vehicles bought from dealers. The tribunal ruled that Volkswagen Financial Services should stop charging consumers the prohibited fees by Wednesday and should submit a written confirmation that it had done so by April 25. Volkswagen Financial Services had taken the matter to the tribunal after the National Credit Regulator (NCR) alleged in October 2017 that the fees were in contravention of the National Consumer Act. In a 2017 compliance notice, the NCR instructed Volkswagen Financial Services to desist from charging the fees by October 24, 2017 “and to provide a written confirmation...
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