Debtfree Magazine October 2017

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NEWS
NCR Vs BMW Finance
The National Credit Regulator
(NCR) has sent BMW Finance a
compliance notice over their “on the
road” fees. A compliance notice is
a scary document telling a Credit
Provider to change something or
face possible action at the National
Consumer Tribunal (NCT) which can
result in big fines.
“On the road” fees basically cover
having the dealer get the car
registration and license plates taken
care of so that the consumer does
not have to handle that. The new
car owner can then just hop in the
car and be on the road. Sometimes
there are other facets to the fee (like
a tank of petrol) that might also be
included.
These fees can amount to a lot of
money. Anywhere from R2500 to
R6000 or more depending on the
dealer. Alternatively, registration
and obtaining of new plates can be
done by the consumer if they do not
wish to pay this fee.
The NCR have told BMW Finance to
stop including these fees in the cost
of credit to the consumer since the
National Credit Act does not make
allowance for them. They have
gone further and said the Credit
Provider had better refund affected
consumers who have been charged
financing fees on these costs.
The NCR have demanded that BMW
Finance do an internal audit and
provide figures about consumer
affected and the subsequent refunds
that will be done. BMW Finance
say they are not happy with the
compliance notice and disagree
with the NCR’s interpretation in this
regard.