The National Credit Regulator (NCR) has issued a compliance notice to BMW Financial Services for charging consumers an on-the-road fee on credit agreements.
The fee is not permitted to be charged on credit agreements by the National Credit Act, said the NCR on Thursday.
“The Compliance Notice instructs BMW Financial Services to refund consumers and submit an audit report to the NCR. 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.
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.
The NCR is responsible for the regulation of the South African credit industry and is an entity of the Department of Trade and Industry.