Watchdogs recover R60m in fines and refunds

AS last year drew to a close, two key rulings dealing with consumer rights were handed down: one by the Supreme Court of Appeal (SCA) and another by the National Consumer Tribunal.

- NICOLA MAWSON

AS last year drew to a close, two key rulings dealing with consumer rights were handed down: one by the Supreme Court of Appeal (SCA) and another by the National Consumer Tribunal. In both cases, the consumer was victorious.

In both cases, the consumer was victorious.In the landmark-setting SCA matter, it ordered WesBank to repay the R170 023 a consumer had paid in instalments over a defective used Ford Ranger that it had financed.

That ruling hinged on the fact that the bank was seen to have supplied the vehicle because it retained ownership of it until the final instalment had been paid.

Trudie Broekmann, who represented the consumer, says "where a consumer would previously have returned his vehicle to the dealership if it turned out to be a lemon, if it's financed, the financier now has to carry the can".

This means that consumers can now claim directly against banks for defective products, avoiding delays or disputes with dealerships. Banks will also be liable for any harm caused by defects, such as accidents or pileups, Broekmann explains.

Another victory also within the motor trade was against WeBuy-Cars after it entered into a settlement with adjudicator National Consumer Tribunal's (NCT's) regulatory body, the National Consumer Commission (NCC). The deal, approved by the NCT just days before Christmas, resulted in WeBuyCars having to pay an administrative fine of R2.5 million as well as refund 31 consumers R3.5m.