Regulator orders VW to refund 'on the road fees' charged to consumers illegally

Volkswagen Golf GTI.
Volkswagen Golf GTI.
Image: 123RF/teddyleung

The National Consumer Tribunal has ordered VW Financial Services SA to refund customers who were charged unlawful fees in credit agreements concluded with the company.

The tribunal found that the company was wrong to charge a road fee, administration fee and handling fee on credit agreements, saying these fees were not compliant with the National Credit Act.

The company has been ordered to:

 - cease the practice and/or conduct of charging consumers the “on the road” administration and handling fees on credit agreements from April 10 2019 and to submit written a confirmation to the national credit regulator (NCR) to this effect;

- calculate the total amount of charges, fees or interest levied on the “on the road” administration and handling fees; and

- refund all those consumers charges, fees or interest levied and submit a report by independent auditors to the regulator.

“The NCR welcomes this judgment as it affirms the protection given to consumers by the National Credit Act against illegal charges and fees on credit agreements”, said Nomsa Motshegare, CEO of the NCR.

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