BMW must refund its clients for charging an on-the-road fee: NCR
The National Credit Regulator (NCR) has directed BMW to refund its customers for charging them an on-the-road fee on credit agreements.
The regulator said it was not aware what the fee was for as BMW did not explain when it enquired.
The charges ranged from R3‚000 to R6‚000.
“The National Regulator ... has issued a Compliance Notice to BMW Financial Services for charging consumers an on the road fee on credit agreements‚” said NCR chief executive Nomsa Motshegare.
“The fee is not permitted to be charged on credit agreements by the National Credit Act.” According to the regulator‚ the compliance notice instructs BMW Financial Services to refund consumers and submit an audit report to the NCR.
“The National Credit Act allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements‚” Motshegare said.
“Consumers should request this quotation from their credit providers so that they can properly check the cost of credit that is being offered.”
She said the NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged.