Bank blasts R699 car-deal action

ABSA came out guns blazing in papers filed at the Port Elizabeth High Court yesterday, saying a proposed class action supported by thousands of desperate consumers caught up in the R699 car scheme is based on nothing but malicious gossip.

Absa, one of three banks that provided credit to the affected consumers, slammed the move as a flagrant attempt by a law firm to hijack a popular cause.

Their court papers hint consumers can probably not expect much mercy from the financial institution, which says preliminary investigations do not support allegations that credit was granted recklessly. This comes after thousands of motorists were lured into buying new cars by an offer meant to have seen them paying significantly reduced monthly instalments.

But, since Satinsky – the company managing the deals – cut ties with its Hong Kong-based holding company, Blue Lakes, many clients have been stuck with much higher instalments that they cannot afford.

An application brought in the name of Johan Bartosch, one of the consumers, to obtain permission to bring a class action against Satinsky and the three banks involved – Absa, Standard Bank and Nedbank – was postponed to August 7 in the Port Elizabeth High Court yesterday. Absa made it clear it intends to use its big guns to fight the application, with Heinrich Valentine, senior counsel in its African litigation team, making the supporting affidavits. - Estelle Ellis