No blanket refund for on-the-road fees
NCT’s finding against VW hasn’t spurred an industry-wide move to 'pay back the money'
If you’ve recently bought a car and are expecting to be refunded for “on-the-road” fees you paid, don’t hold your breath. SA’s motor companies have largely adopted a wait-and-see attitude in the wake of Volkswagen being ordered to cease charging its customers on-the-road, administration and handling service fees, a ruling against which VW Financial Services has appealed. Last year, the National Credit Regulator (NCR) launched an investigation into on-the-road fees charged by dealers and found the charges contravened the National Credit Act (NCA). Volkswagen Financial Services took the matter to the National Consumer Tribunal (NCT) which earlier this month agreed with the NCR’s findings and instructed VW Financial Services to refund, with interest, customers it charged for such fees on credit agreements since 2007. The tribunal said credit providers couldn’t add items to the consumer’s principal debt if doing so contravened the National Credit Act. “Allowing credit providers carte b...