|
Doctor taken for a ride 06 July 2009 Dr. Jones owned a 2006 model Audi motor vehicle and the car was financed by a local bank. During January 2009 she visited an Audi dealership where she informed the sales consultant that she would be prepared to purchase a 2009 model Audi motor vehicle on condition the dealership accepted her old car as a "trade-in" and settled the outstanding balance due to the bank. The dealership agreed. The same bank also agreed to finance the new car. The doctor took possession of her new car during January 2009. At the end of January 2009, she was surprised to discover that the debit order payment for her old motor car had been paid by the bank. She immediately contacted the Audi dealership to query the matter, only to discover that the dealership had been placed under liquidation. She further ascertained that the dealership had not settled the outstanding balance on her old car with the bank as they had undertaken to do. The liquidators had removed her old car and, as there was an outstanding balance still due, they handed the vehicle over to the bank. The bank auctioned the vehicle and she was called upon to pay the shortfall of R37 000. She felt aggrieved as she was now saddled with an installment for her new car as well as a liability to the bank in the sum of R 37 000. She approached the office of the Ombudsman for Banking Services for assistance. We found that there was indeed an agreement between the doctor and the dealership regarding settlement of the outstanding balance on the old car. The dealership reneged on this agreement. We also found that the bank was not a party to this agreement. The bank was not even aware of this agreement. We could therefore find no maladministration on the part of the bank. Accordingly, we were not able to assist the doctor. Consumer tips Consumer credit agreements are regulated by the National Credit Act. In terms of this Act, you enjoy a number of rights. Read your pre-agreement statement / proposed agreement carefully before you sign. Ensure that any terms or conditions agreed upon are in fact included in the agreement. You have five business days to consider the proposed agreement. In cases of uncertainty, contact the National Credit Regulator at 0860 627 627 or at www.ncr.org.za |