Court dismisses class action application in R699 car scheme case

2014-08-22 10:17

The Eastern Cape High Court in Port Elizabeth has dismissed an application for a class action certification in the R699 car scheme case, a lawyer representing consumers said.

“It was dismissed with costs,” said Duncan Heuer today.

“As the court held that the current matter does not lend itself to be pursued by way of class action ... consumers will now have to engage with their credit providers individually, whether they are legally represented or not.”

Heuer said his firm, Pieterse Cary Finlaison, planned to appeal the cost order.

“We respect the judgment handed down ... not to certify the consumers affected by the R699 car scheme as a class.

“We have, however, after careful consideration ... taken the decision as a firm to file a notice of intention to seek leave to appeal the cost order made against the firm.”

A group of apparently 550 consumers, led by Heuer, approached the court to declare contracts between the banks and car buyers null and void.

About 17 000 people were believed to have been affected by the scheme run by the Satinsky Group. The scheme 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.

The scheme collapsed in July and banks are calling for full repayments – amounts not affordable for all those involved.

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