Jack from Magaliesburg wants to know if customers are entitled to a refund for on-the-road fees.

He wrote,

Dear SuperSpark

"I have two customers who want to be reimbursed for on-the-road fees they allege I charged illegally. Both vehicles were financed. This comes on the back of the Regulator's issuing of compliance notices against BMW Finance and Volkswagen Financial Services. What is my position?"

SuperSpark replies:

Dear Jack,

They are correct in that there were Compliance Notices given to BMW Finance and Volkswagen Financial Services.

I do, however, think that your customers are a bit premature in demanding to be reimbursed.

Firstly, the cost is not illegal - as there were services rendered to the customers to get the vehicles ready for delivery. Secondly, the compliance notices refer to the fact that the Regulator believes these costs could not be financed under the National Credit Act.

Nowhere does the Regulator refer to the on-the-road fees as illegal. I also need to mention that both the affected parties plan to appeal.

Irrespective of the outcome of the final ruling, the costumers are still responsible for the cost.

Gotta fly…

SuperSpark