R699 car buyers find no recourse through the courts
JOBURG - Consumers, who have been financially impacted by the discontinued R699 car scheme, would need to engage with their credit providers individually in a bid to have their financial agreements set aside.
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This follows the Port Elizabeth High Court’s dismissal of an application for the certification of class action brought by consumers who had been enticed by the seemingly affordable deal but now faced higher instalments.
The proposed action sought to have the credit agreements for vehicle finance, determined between themselves and banks including Absa, Nedbank and Standard Bank, through the scheme, set aside.
Judge Dayalin Chetty dismissed the application with costs.
The judgment dealt a further blow to thousands of consumers who were reportedly being held personally liable for the full costs of the vehicles purchased through the collapsed scheme.
According to Pieterse Cary Finlaison (PCF) Attorneys, the legal firm that had been assisting affected consumers, the court held that the matter did not lend itself to be pursued by way of class action.
“Going forward consumers will now have to engage with their credit providers individually, whether they are legally represented or not,” PCF Attorneys said in a statement.
PCF Attorneys noted that it respected the judgment handed down by the court not to certify the consumers affected by the R699 car scheme as a class.
“We have, however, after careful consideration and having taken advice from senior counsel, taken a decision as a firm to file a notice of intention to seek leave to appeal the cost order made against the firm.”
“It has been our intention from the outset of this matter to assist consumers affected by the R699 car scheme, at no cost to them. Despite the judgment, we shall continue to do so in any way we possibly can.”
Meanwhile, many affected consumers were venting on the Facebook group “I have been done in by ‘Drive a New Car From R699 per month’”.
Affected consumers were using the Facebook group to co-ordinate countrywide mass visits to the banks participating in the car schemes.