Car dealership, renovations firm ordered to refund customers

A car dealership and a home renovations company have been fined and ordered to refund their customers R697,000 for shoddy service and defected goods. 

The National Consumer Tribunal made the rulings recently after the customers approached the National Consumer Commission (NCC) to intervene. The orders were against WP Motors and Home Renovations Cape Town.

According to the NCC received, both suppliers had contravened provisions of the Consumer Protection Act (CPA).

In the first case, a customer bought a 2015 Ford Ranger vehicle for R276,000 from WP Motors in January 2020. The customer said the vehicle's engine broke down after three days and the consumer wrote to the dealership indicating his wish to cancel the transaction for a full refund.

The NCC said despite the consumer’s direction to cancel the transaction, WP Motors refused to cancel the transaction and insisted on repairing the vehicle. The supplier further claimed that the driver’s negligence caused the breakdown.

“By refusing to cancel the transaction, WP Motors contravened Section 56(2) of the CPA which states that within six months of delivery of any goods to a consumer, the consumer may return those goods to the supplier, without any penalty and at the supplier’s risk and expense,” said the NCC.

The commission further stated that the consumer was deprived of using and enjoying the vehicle he purchased.

“The tribunal concluded that the consumer did not repudiate his claim to cancel the transaction for a refund. On the contrary, WP Motors unfairly placed the consumer in an untenable position by compelling him to accept the vehicle against his will when it insisted on repairing the vehicle. The supplier’s refusal to address the dispute further caused the consumer severe inconvenience”, the NCC said. 

Handing down its ruling, the Tribunal was persuaded that an administrative penalty is justifiable and WP Motors is to pay an administrative fine of R200,000.

In another matter against the renovation company, according to the NCC, a customer entered into a house renovation agreement in 2021 and paid R478,000 and while the construction was being done the consumer requested additional renovations that were not included in the initial agreement.

The company provided a quotation of R59,000 however, the consumer noticed defects with the renovations and was not satisfied with the workmanship of the supplier which the company refused rectify. 

“The Tribunal found that by failing to rectify defects, halting all renovations and requesting an outstanding balance before completing the work, Home Renovations contravened the CPA. The Tribunal imposed an administrative fine of R50,000. The supplier was further ordered to refund the consumer R420,748.20. The NCC was also instructed to ensure that the service provider processes the refund to the consumer,” said the NCC.

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