Help for victims of R699 vehicle scheme

2014-07-22 00:00

HUNDREDS of victims who fell prey to the “R699 vehicle scheme” have been granted an urgent hearing by the Eastern Cape High Court.

Duncan Heuer of the Pieterse Cary Finlaison Attorney Group and his team from Port Elizabeth will tackle the “scheme gone sour” that has affected at least 17 000 people from all over the country.

They went from paying at least R699 for their brand new vehicles to suddenly paying the full instalment.

About 1 000 people contacted the attorney through their SMS service, Heuer had said.

Nthupang Magolego, manager of investigations and enforcement for the National Credit Regulor (NCR) said the first step was to classify the people affected as a class and not an individual.

“They all have one common interest and this will lead to class action. The NCR is aware of the court application to be heard today,” said Magolego.

Last week the NCR issued a compliance notice against the Satinsky Group who ran the scheme.

The notice required Satinsky to submit an audit report confirming that its advertisements for credit comply with the National Credit Act (NCA).

“The NCR does not oppose the application for consumers to be declared as a class and wishes to reiterate that it is investigating the Satinsky scheme for possible contraventions of the NCA.”

Sunaina Depalal who had bought into the scheme, said after the company was liquidated, her bank had contacted her to arrange a payment plan.

“I am glad that people have taken the matter to court. Unless they offer us (an option) it is going to be very hard for people to pay the full instalment for the cars. This will help me and other people keep our cars,” said Depalal.


New cars were purchased from Satinsky at a monthly instalment of R699 per month, after the normal vehicle loan agreement provided by the banks was offset by fees earned from advertising decals (banners) on the new cars. Motorists had to drive a certain number of kilometres and provide proof of this to Satinsky to earn the advertising fees.

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