Legality of ORT in vehicle financing probed

THE so-called “on the road fees” (ORT fees), where vehicle credit providers add extras to the financing deal, came under the legal spotlight in the Supreme Court of Appeal (SCA), with the National Credit Regulator (NCR) wanting to halt this practice.

- ZELDA VENTER

The ORT fees were usually added to the financing agreement, which includes extra fees covering licensing, pre-delivery inspections, roadworthy certificates, number plates, and extra fuel.

The credit regulator appealed against the orders of the majority of the full court (three judges) of the Gauteng High Court, Pretoria, in which it was found that the credit providers did not charge consumers the OTR fees.

The High Court found that vehicle financing providers merely financed the purchase of vehicles on credit, the purchase price of which included the OTR fees agreed upon between the consumer and the car dealers.

The credit regulator, however, maintained that Volkswagen Financial Services SA, BMW Financial Services SA, and Mercedes-Benz Financial Services SA had unlawfully charged consumers OTR fees.