The Department of Economic Development, Environment, Conservation and Tourism (DEDECT through the North West Consumer Affairs Court has successfully secured a settlement in favour of a consumer who was sold a motor vehicle with mechanical defects, resulting in the cancellation of an instalment sale agreement and a refund of more than R273 000.
The matter involves Tsiane Services (Pty) LTD, represented by Mr Joseph Thapelo Makgeledisa, who purchased a motor vehicle from Robsmail Motors CC under an instalment sale agreement financed by Nedbank Limited.
Shortly after the purchase, the vehicle began experiencing serious mechanical problems, within three months of acquiring the vehicle. He immediately returned it after discovering some defects and requested the dealer to fix it. The motor vehicle was taken to Wesvaal VW Mahikeng and issued a quotation of R81 568.00. The dealership refused to repair the defects as per quote. The consumer, Mr Makgaladisa then returned the motor vehicle, demanded the cancellation of the contract and refund of instalment already paid. He also informed his bank about his intention to cancel the agreement.
Following the discovery of the defects, Tsiane Services approached the North West Consumer Affairs Office for mediation however departmental investigation Officer was chased out of the premises by Robsmail Motors CC. .
The mediation process failed due to non-cooperation of the dealership and the matter was subsequently referred to North West Consumer Affairs Court. It took the Clerk of the Court to involve South African Police Service (SAPS) for purpose of serving summons
Both Robsmail Motor CC and Nedbank Limited, which financed the transaction, were served with summons in accordance with the provisions of the Consumer Protection Act (Act 68 of 2008).
Through the court process, Nedbank legal representative and Consumer Protector: Mr Seile Letsogo agreed to settle the matter by cancelling instalment sale agreement and refunding Mr Makgaledisa an amount of R273 463, 38 which was total amount paid towards servicing the instalment sale agreement.
In his concluding remarks, Mr Letsogo emphasised the importance of consumers lodging complaints within prescribed timeframe of six months as outlined in Consumer Protection Act and exercise their discretion whether to cancel agreement and seek refund or opt for repairs or replacement.
MEC for DEDECT, Bitsa Lenkopane, welcomed the settlement agreement and commended the work of the North West Consumer Affairs Court in protecting the rights of consumers.
“This case demonstrates that the Consumer Protection Act is not merely legislation on paper but a powerful tool that protects ordinary consumers against unfair business practices. The successful resolution of this matter reflects the commitment of the North West Consumer Affairs Court to ensure that justice is accessible and that businesses are held accountable,” said MEC Lenkopane.
She further emphasised that the outcome highlights the important role played by the Consumer Affairs Office and the North West Consumer Affairs Court in enforcing consumer rights and promoting fair trading practices in the province.
“Consumers must never feel powerless when confronted with defective goods or unfair treatment. The department will continue to strengthen consumer protection mechanisms to ensure that residents of the North West Province are treated fairly in the marketplace. We advise businesses to ensure regulatory compliance to mitigate potential conflicts with their customers,” she added.
The Department encourages consumers who believe their rights have been violated to report such matters to the Consumer Affairs Office, where assistance can be provided in resolving disputes in terms of the Consumer Protection Act.
Issued by the Department of Economic Development, Environment, Conservation and Tourism
For inquiries, contact:
Thomas Matlapeng
083 687 3649
OR
Mr. Jeremiah Matebesi
072 333 0325
Email: JeremiahMatebesi@nwpg.gov.za
Twitter: @nwpg_dedect / Facebook: @nwdedect