The country’s high courts, the National Consumer Tribunal and the Supreme Court of Appeal all fought for the rights of consumers in terms of the Consumer Protection Act last year, getting millions back for consumers. The cherry on top was the recent ground-breaking judgment by the Supreme Court of Appeal against WesBank, where the court ruled that a bank is not only a creditor but also a supplier that is subject to the provisions of the Consumer Protection Act (CPA) if it finances your car. Until now,consumers could return a used car that had defects in the first six months to the dealer and receive a refund.
If the car was financed by a bank, the consumer had to repay the bank after getting the refund from the dealer. The bank would never be in the picture otherwise, but the Supreme Court of Appeal (SCA) did not agree with this and ruled that the bank is also a supplier and must therefore take responsibility for the defective car. Consumer attorney Trudie Broekmann, who represented the consumer in this case, says this “ground-breaking judgment is a victory for consumers and a wake-up call for banks”.
She says it is a game-changer for consumers, banks and dealerships and will compel banks to repay consumers who bought a defective vehicle it financed. The SCA ruled against WesBank and upheld the consumer, Alta Van Niekerk’s, appeal with costs against an earlier order of the Mahikeng High Court. In addition, the SCA ordered the bank to repay Van Niekerk R170 023 for the defective Ford Ranger it financed.
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“Where a consumer would previously have returned his vehicle to the dealership if it turned out to be a lemon, from now on, the financier has to carry the can. This has huge risk and commercial implications for the banks.” Before they even ended up in court, used car dealerWeBuyCars confirmed it settled complaints from 31 consumers recently with the National Consumer Commission(NCC) and will refund them a total of R3.4 million. In addition, the used car dealer will pay a fine of R2.5 million for contraventions of the CPA.
The 31 consumers complained to the NCC that WeBuyCars did not adhere to the CPA that gives consumers the right to return a used car that is defective within the first six months and choose to have a refund, repairs or an exchange for another car without defects. After investigating the complaint, the NCC reached an agreement with WeBuyCars and referred the matter to the National Consumer Tribunal (NCT) to be confirmed and made an order of the court.
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