Volkswagen South Africa ordered to repay customers for “on the road fees”

The National Credit Regulator (NCR) has ordered Volkswagen South African to refund customers it has charged for “on the road fees”.

The fee is not permitted to be charged on credit agreements by the National Credit Act, the NCR said in a statement on Tuesday.

“The National Credit Act allows consumers to be given a quotation which sets out the cost of credit before signing credit agreements.

“Consumers should request this quotation from their credit providers so that they can properly check the cost of credit that is being offered,” said chief executive officer at the NCR, Nomsa Motshegare.

The order follows a similar decision handed down at the beginning of October against BMW, which was reportedly charging between R3‚000 to R6‚000 per customer for “on the road fees”.

“Credit providers are reminded that it is a criminal offence to charge consumers fees and charges that are prohibited by the National Credit Amendment Act of March 2014,” said Motshegare.

Motshegare said the NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged.


Read: BMW South Africa ordered to repay customers for “on-the-road” fee

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Volkswagen South Africa ordered to repay customers for “on the road fees”