Nezwi Khanyile has been twice lucky as Consumer Line has saved his car from being repossessed by WesBank twice within two years.
The bank returned Khanyile's vehicle on Thursday after Consumer Line took up his matter. Khanyile of Fleurhof, Gauteng, fell into arrears on his car loan following the deaths of his two cousins.
He had taken out a loan to help with the funeral costs. This had led to him being overindebted.
After missing four repayments on his vehicle finance, the bank demanded he surrender his car. At that time, the arrears had escalated to R21,000, Khanyile said.
He said the National Credit Act allows him to make arrangement to pay arrears or to go under debt review, but he opted for an arrangement.
However, The bank wanted him to settle 80% of the arrears in a single payment, which Khanyile was unable to do.
Consumer Line stepped in, so the bank agreed to an alternative arrangement. Since that arrangement Khanyile did not miss his monthly instalments. Consumer Line has seen statements which showed he paid R5,500 every month.
The arrangement was that he would pay his normal instalment and an additional R1,000. However, he paid an additional R1,500 over and about this arrangement, bringing his repayment to R5,500.
"Instead of the agreed amount I paid R1,500 more to show my commitment," Khanyile said. He said when his arrears had decreased to R10,000, the bank charged him interest, legal fees and debt collection fees. This was despite the bank having said it would monitor Khanyile's account and review the arrangements within six months.
The bank then obtained a default judgment even though he honoured the arrangement.
We save one car twice
Nezwi Khanyile has been twice lucky as Consumer Line has saved his car from being repossessed by WesBank twice within two years.
The bank returned Khanyile's vehicle on Thursday after Consumer Line took up his matter. Khanyile of Fleurhof, Gauteng, fell into arrears on his car loan following the deaths of his two cousins.
He had taken out a loan to help with the funeral costs. This had led to him being overindebted.
After missing four repayments on his vehicle finance, the bank demanded he surrender his car. At that time, the arrears had escalated to R21,000, Khanyile said.
He said the National Credit Act allows him to make arrangement to pay arrears or to go under debt review, but he opted for an arrangement.
However, The bank wanted him to settle 80% of the arrears in a single payment, which Khanyile was unable to do.
Consumer Line stepped in, so the bank agreed to an alternative arrangement. Since that arrangement Khanyile did not miss his monthly instalments. Consumer Line has seen statements which showed he paid R5,500 every month.
The arrangement was that he would pay his normal instalment and an additional R1,000. However, he paid an additional R1,500 over and about this arrangement, bringing his repayment to R5,500.
"Instead of the agreed amount I paid R1,500 more to show my commitment," Khanyile said. He said when his arrears had decreased to R10,000, the bank charged him interest, legal fees and debt collection fees. This was despite the bank having said it would monitor Khanyile's account and review the arrangements within six months.
The bank then obtained a default judgment even though he honoured the arrangement.
When the car was repossessed early this month, he only had five months to pay it off, Khanyile said.
Ghana Msibi, an executive head at WesBank Motor, said Khanyile breached the July 2017 agreement in December when his father died.
He said in January last year the bank then instructed its attorney to cancel the agreement and demand the return of the vehicle as he had failed to adhere to the agreement.
He was not supposed to breach that agreement at all. Msibi added the summons was served in March 2018 at his chosen address.
"As Khanyile failed to defend the action instituted, judgment was granted last July."
The car was then repossessed. The bank offered him a settlement term of R77,822 over six month, but he declined the offer. After Consumer Line's Monday's publication, the bank extended his terms of repayment. The bank has now offered to allow him to pay the balance over nine months.
"WesBank will release the vehicle to Khanyile once he makes the first payment and signs the settlement agreement," Msibi said.
Khanyile signed the settlement agreement on Thursday and got his car back.