The complainant entered into an agreement with the dealership to purchase a vehicle. The complainant then applied for vehicle finance with the Bank. The finance application was approved, and the vehicle delivered to the complainant by the dealership.


Upon taking delivery the complainant noticed that the vehicle had defects and may have been involved in an accident. He lodged a complaint with the Bank and the matter was referred to the dealership.


The dealership contacted the complainant and ultimately the dealership and the complainant agreed that the complainant would fix the defects and the dealership would pay him money in return. The dealership paid the money into the complainant’s personal account after the complainant had confirmed that he fixed the vehicle. Essentially the complainant elected to repair the motor vehicle in terms of the remedies available to him in the Consumer Protection Act.


A few days later, the complainant wanted the Bank to cancel the finance agreement because he was not happy with the vehicle and the pricing thereof. The dealership refused to cancel the agreement because the complainant had undertaken to fix the vehicle and had been paid for it.


Our Office found that the complainant was presented with the option to replace or fix the vehicle. He opted to take money from the dealership and fix the vehicle. He was paid by the dealership for fixing the vehicle. He confirmed that the vehicle was fixed. The complainant was presented with the finance agreement and the cost of credit before taking possession of the vehicle. He signed the agreement acknowledging that he agreed with the costs thereof.


Our Office found that there was no legal basis to compel the Bank to terminate the contract on the basis he was not satisfied with the costs of the vehicle. Furthermore, he elected to have the vehicle repaired and had acknowledged that it was repaired. He was paid for the repairs as such there was no basis to make any recommendation that the Bank cancel the contract.


Principle: Whilst a Bank has an obligation to exercise fairness in its dealings with a customer, a Banking customer also has a duty to ensure fair dealings with the Bank. Buyer’s remorse is not a legal basis to terminate a contract.

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