Thursday, January 22, 2015

How to return a car in terms of the Consumer Protection Act.

What happens if I bought a car which is defective or you are not satisfied with?

The Consumer Protection Act affords a consumer to return a product which is defective within six months after date of purchase for a refund.

When you buy a car however, the car is purchased from the dealer by the bank who becomes the owner. You purchase the car from the bank. To whom must the car now be returned?

This is the question the Cape High Court had to deal with recently in the matter of MFC v BOTHA.

In short the court found that the bank cannot be regarded as a supplier and therefore the vehicle cannot be returned to the bank. Both the bank and the consumer are regarded as consumers.

The court did not elaborate on the procedure to be followed as the six-month period had lapsed by the time the case was heard.

It would however be advisable to return the vehicle to the dealer and contact your bank with the details. The bank will then have to claim the purchase price from the dealer to settle your account.

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Wednesday, January 21, 2015

High Court confirms that consumer is not liable for PDA mistakes.

The High Court of Bloemfontein and Johannesburg has confirmed that a consumer who pays his debt review amount to the PDA but the PDA neglects to make the correct payment to the credit providers is not in wilful default of the court order.

The High Court confirmed that in such a case the credit provider is not entitled to judgement and can therefore not enforce the credit agreement.

Please visit our website for further details.