Following the collapse of the ‘Get a new car for R699’ car scheme, Albert Venter, the person behind it was set to sue WesBank for R20 million.
Venter, who owns Satinksy 128 (PTY) Ltd., claimed that WesBank allegedly disclosed confidential information of their financing scheme, breaking their confidentiality agreement. WesBank was the only bank from the four big South African banks that did not get involved in the scheme. Standard Bank, Nedbank and Absa financed Satinsky cars.
However, Rudolph Mahoney, who works in research and public relations at WesBank said that they replied to Venter’s claim, “several months ago” and have received no further response from him to date.
When Justmoney asked if he would still be perusing the case against WesBank, Venter said “no comment”.
NCR investigation
The National Credit Regulator (NCR( said it was combatting predatory lending practices, including credit marketing practices and had slapped a Compliance Notice against Satinsky in July. However, on Tuesday, 4 November, it was announced that the NCR had finished their investigation and no criminal charges would be brought against Satinsky.
“All the stakeholders, including the banks have cooperated and submitted all the information required for the purpose of the investigation,” said Trade and Industry Minister Rob Davies to Fin24.
“Due to the analysis of the outcome of the investigation that is currently underway, there is no action, including a criminal charge that has been taken against anyone as yet,” said Davies.
Class action suit
The R699 car scheme members were denied a class action suit against the banks and Satinsky. On Thursday, 21 August, the Port Elizabeth High Court judge dismissed attorney Duncan Heuer’s application to have the R699 car scheme clients certified as a class.
The aim of the class action suit was to have the credit agreements with the banks – Nedbank’s Motor Finance Corporation (MFC), Absa and Standard Bank – declared to be reckless lending in terms of the National Credit Act.
If the class action suit was a success, the banks would have been obligated to take back the cars and declare the contracts between them and the consumers null and void.
More on the R699 car scheme
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