Some brokers continue to flout the law by giving consumers loans against their cars despite the National Credit Act (NCA) declaring the practice unlawful.
Melikhaya Nyathi of Fourways, northern Johannesburg, wanted to borrow money and used his BMW as collateral last November.
Nyathi said he was looking for a company to give him a loan against his car when he came across Car Money Rescue (CMR) and spoke to Pieter Coertzen, the marketing director.
The minimum offer on the "pawn your vehicle while you drive" is R10000 and the maximum is R30000, said Nyathi.
He took a loan of R20000 which he paid off in January this year at an additional interest of R6000, he said.
Nyathi said the other condition of the loan was to transfer the ownership of his car to their name and have it reinstated into his name upon payment of the full loan amount.
"I was told they give loans to owners whose cars are paid up," he said.
He was also told that Car Money Rescue would let him keep the car until he settled the debt. The loan amount was to be paid in 30 days and should he fail to do so he would be given two days to pay in full or have his car sold, he said.