Car deal motorists get help
[caption id="attachment_40284" align="alignright" width="150"] DUNCAN HEUER[/caption]
A PORT Elizabeth lawyer has offered his services to victims of the "R699-a-month" car scheme debacle at no cost, saying he believes the best way forward is for the high court to declare their contracts void.
This comes after thousands of motorists lured into buying new cars by an attractive offer meant to see them paying a significantly reduced monthly instalment were left fuming when the international company managing the deals cut its losses with its Hong Kong-based holding company.
Duncan Heuer, of the law firm Pieterse Cary Finlaison, said the high court could order that consumers left in the lurch be given a chance to give the vehicles back.
He says he has an advocate on board who is willing to appear on a contingency basis if there are enough people needing his help.
A Johannesburg-based consumer activist, Simon Lapping, said he had also started off an investigation into Satinsky, the South African company behind the scheme, as a favour to two friends who bought cars under the offer.
Lapping said his investigation so far had revealed a litany of alleged fraud, including the extensive understatement of consumers' expenses, fake relatives on application forms, and used vehicles sold as new.
After discussions with liquidation experts, he believes there can be a claim of close to R500-million against the owner of Satinsky, Albert Venter.
"Investigators say that this is the biggest [alleged] car scam in the history of South Africa," he said.
Heuer, who is also the attorney for Greenpeace Africa, said clients "don't have to pay us any fees".
He added: "If we win, we will ask the court to order costs against Satinsky and they will pay our fees. If we lose, we will not get any fees."
Lapping said he had received information from a confidential source at Satinksy that up to 40000 motorists were lured into buying new cars by the offer meant to see them paying as little as R699 a month. Part of the deal was that their cars carry advertisements publicising the offer.
Last week and without warning, many consumers were plunged into financial crisis by the move.
Venter said yesterday that he had no further comment.
The company sold its branding division to Hong Kong company Blue Lake in 2011 in a deal meant to see a similar concept implemented in Asian countries. Revenue generated in South Africa was to be split between the two companies.
Heuer says his plan is to bring an urgent application before the high court to declare all the contracts made void.
"We will ask for a court order that allows for consumers to return the vehicles," he said.
Lapping, who has a Facebook page, said he initially started his investigation into Satinsky as a favour to two friends.
Since the collapse of the scheme he has been busy from 7am to 11pm.
"My phone bill has gone through the roof," he said.
"I have uncovered a hell of a lot. It is becoming more and more clear to me that there was a deal between the financiers and Satinsky. Some consumers are paying as much as 18% interest."
He said in some cases he saw the monthly expenses of Satinsky clients had been vastly understated in the financial application.
"I am helping a woman from East London whose home and car loans exceeded her entire salary."
He said he was meeting with Absa bank about their initial involvement with the car deal this week.
Absa said in a statement last week that while they were involved at the start, concerns prompted the bank to distance itself from the scheme.
Lapping advised clients of the scheme to think carefully about refinancing their cars, saying it would hold dire implications for interest payments.
"About 90% of people who applied for this earn between R6000 and R10000 a month. They are not people who asked a lot of questions. I see this as total exploitation," he said.
Lapping said he had also received reports of consumers being threatened.
"I also urge consumers to get an eNatis report for their vehicles."
He said some of the documentation he received indicated that some of the "new" vehicles sold to consumers were allegedly cars bought from rental companies. He also urged consumers to get a copy of their application forms for financing from the bank.
"There have been serious problems with the statement of expenses. We also found that in some cases fraudulent names were listed for next-of-kin. For instance, a Johan Roux comes up several times as 'an uncle'," he said.
Angry consumers also started an online petition over the weekend asking the police organised crime division, the Hawks, and their Hong Kong counterparts, to investigate Satinsky and Blue Lake.
Keith van Jaarsveld, who started the petition, said he was ruined by the alleged scam.
"I think, too, that laws need to be revised regarding these schemes," Van Jaarsveld said.
Lebogang Selibi, of the National Credit Regulator, says consumers who feel that credit was extended fraudulently or recklessly can file a complaint with them.
"According to the new regulations they can now do it themselves. Previously it had to be done through a debt counsellor," she said.
- Contact Duncan Heuer at Pieterse Cary Finlaison on 041-5850980
- E-mail Simon Lapping on info@pepperpotkitchens.co.za
- You may also send a complaint about the extension of reckless credit to complaints@ncr.org.za
THIS is what consumer activist Simon Lapping suggests you do if you have been affected:
- Obtain a copy of your application for the car loan. Do not accept the excuse the bank does not have it.
- Scrutinise your income and expenditure on the application and see if it is correct.
- Write an affidavit regarding the whole application process. Mention how it was done and what figures you gave Satinsky, if any at all.
- If there is clear evidence that your application is not truthful or lacks full disclosure, then open a case with the police for fraud against the party that made the application on your behalf. Get a case number.
- Record any conversations or threats no matter how trivial.
- Get an eNATIS report on the history of your vehicle and compare it to what you were told you were getting.
