The large number of approaches concerning finance problems
received by the Motor Industry Ombudsman (MIO) are a clear indication that
motorists generally are not aware of the implications of buying a vehicle,
according to ombudsman Johan van Vreden.
Van Vreden says that the MIO is not mandated to handle financing problems as
this falls outside the ambit of his office. “When a vehicle is purchased with
the assistance of a bank or any other financial institution, the vehicle becomes
the property of the financing institution until full repayment to the
institution is effected. The dealer or supplier of the vehicle has no authority
or responsibility in this area.
“Problems in respect to financing arrangements and repayments must therefore be
addressed to the bank or financing institution and, failing satisfactory
resolution of their problem, they can then approach the banking ombudsman or the
regulator of the Credit Act. Recourse cannot be taken against the vehicle
supplier in such cases.
“Dealers would be saving themselves a lot of possible unnecessary
misunderstanding by new owners if they ensured that all customers are aware of
exactly how the financing of a vehicle works,” concluded Van Vreden.
All complaints to the ombudsman’s office must be in writing and a complaint form
can be downloaded at www.miosa.co.za.
For further information please call the Motor Industry Ombudsman of SA on (012)
841-2945 or fax your complaint to (012) 841-2842. You can also visit the MIO’s
website at www.miosa.co.za, or e-mail your complaint to firstname.lastname@example.org.
Issued by Ruben Els, Media Ignition, tel: 083 302 6602 on behalf of the Office
of the Motor Industry Ombudsman
13/ 09/ 07