Volkswagen Financial Services to appeal ‘on the road fees’ order

Volkswagen Financial Services (VWFS) South Africa has acknowledged the order by the National Consumer Tribunal and plans to take it on appeal.

In a statement released on Thursday (11 April), the company said that it has taken external legal advice and that its legal team has informed them that an appeal has a good chance of success.

It further noted that it holds a different view on the interpretation of the provisions of the National Credit Act.

“As a result, VWFS has noted an appeal against the order,” it said.

“The noting of the appeal will suspend the order of the Tribunal and VWFS will not be making any refunds until the appeal is finalised.”

In an order handed down on Monday, the National Consumer Tribunal said that Volkswagen Financial Services must stop charging customers for ‘on-the-road fees’ from 10 April 2019.

The company – which is a separate entity from Volkswagen South Africa – was also ordered to calculate the total charges of the fees (including interest) added to the on-the road-fees, and to refund customers.

Following this, it must submit a report to the NCR to confirm that these refunds had taken place.

According to comparison website Hippo, an on-the-road fee – also known as a ‘dealership’ fee or ‘service and delivery fee – is added for extras such as pre-delivery checks‚ valets and admin.

The cost can be anything upwards of R4,000 on cars with a price tag of under R200,000.


Read: Volkswagen Financial Services ordered to pay back ‘added fees’ to South African customers

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Volkswagen Financial Services to appeal ‘on the road fees’ order