An urgent hearing into the R699 car sales scheme has been set for this week in the Eastern Cape High Court, the Business Times reported on Sunday.<\/p>\n
The hearing — scheduled for Tuesday — opens up the possibility that class action could be taken against the banks that supported the scheme launched in 2008 by Andre Venter, the CEO of the Satinsky Group.<\/p>\n
A group of apparently 550 consumers — led by Port Elizabeth lawyer Duncan Heuer of Pieterse Cary Finlaison — are to ask the court to declare contracts between the banks and car buyers null and void.<\/p>\n
The respondents in court papers are listed as the Satinsky Group; along with Standard Bank, Absa, and Nedbank’s Motor Finance Corporation. FirstRand’s Wesbank is also listed — but it is most likely they will appear only as a witness; since they rejected participation in the scheme in 2011.<\/p>\n
“We do not know what exactly the relationship was between the banks and Satinsky,” said Heuer.<\/p>\n
About 17,000 people are believed to have been affected by the scheme which offered to cut repayments on new cars to about R699, if the motorists drove a minimum distance with pasted advertisements about the scheme on their cars.<\/p>\n
The scheme collapsed earlier this month — with banks now calling for full repayments — amounts not affordable for all those involved.<\/p>\n
Heuer told the newspaper that he believed the R699 scheme resembled a Ponzi model.<\/p>\n
Venter has apparently opened up another company that offers unusual motor financing structures.<\/p>\n
R699 cars deal is a scam: consumer activist<\/a><\/strong><\/p>\n The inside story of the R699 car scheme<\/a><\/strong><\/p>\n