NCR loses fees appeal

CARS: REGULATOR FAILS TO OVERTURN JUDGMENT IN FINANCE AGREEMENTS → SCA rules BMW, Volkswagen and Merc did no wrong.

- Roy Cokayne

The National Credit Regulator (NCR) has failed to overturn a judgment that found the financial services divisions of BMW, Volkswagen and Mercedes-Benz did not contravene the National Credit Act (NCA) by charging consumers for on-the-road (OTR) fees in their vehicle finance agreements.

The NCR launched the appeal in the Supreme Court of Appeal (SCA) after a majority judgment of the High Court in Pretoria found that BMW Financial Services, Volkswagen Financial Services, and Mercedes-Benz Financial Services did not charge consumers the OTR fees.

That judgment found the three credit providers merely financed the purchase of motor vehicles on credit, the purchase price of which included the OTR fees agreed upon between consumers and motor vehicle dealers.

Judge Tati Makgoka dismissed the NCR's appeal in the SCA on Friday.