SARB no longer investigating Satinsky

By Staff Writer
By Ashleigh Brown, journalist, Justmoney 
 
The South African Reserve Bank (SARB) will not be investigating Satinsky, the company behind the ‘Drive a car for R699 a month’ scheme. 
 
Justmoney has exclusively learned that SARB will not be investigating Satinsky in spite of accusations that Satinksy had altered information on customer’s vehicle loan applications. “The SARB is not investigating the Satinsky Group as it has not been determined that the entity is or has been conducting the business of a bank,” said Hlengani Mathebula, head of group strategy and communications at SARB. 
 
This comes as another blow to the clients of the scheme who recently had their application for a class action suit against the banks and Satinsky denied. This resulted in the attorneys who represented, Pieterse Cary Finlaison Attorneys (PCF), R699-ers to take on the costs of the case. 
 
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.
 
Bank’s exposure 
 
It was reported that Absa had R700 million worth of exposure to the R699 car scheme.  Standard Bank’s revelation about their exposure pushed the overall exposure to the R699 car scheme by the banks to R2.768 billion.
 
MFC has a collective outstanding exposure of R1.6 billion to the R699 car deal scheme, almost double Absa’s exposure.
In a statement to Justmoney Nedbank claimed that: “Individual MFC clients who have purchased vehicles through the Satinsky Group since 2007 amount to approximately 14 000, with a collective outstanding exposure of R1,6 billion at 30 June 2014.”
 
More information
 
Justmoney’s sister website, Moneybags, has a full report on the claim made by the R699 car scheme clients, and everything you need to know about the R699 car scheme itself. 
 
Affected R699 clients with Nedbank should contact MFC on these various channels for assistance with their loans: 
 
• 699queries@mfc.co.za
 
• complaints@mfc.co.za
 
• 0860-879-900 (Tell the call centre agent you are a R699 / Satinsky client to ensure fast-track routing to the specialist support team).
 
For Absa clients call 0860 789 111 (click option 5) to enable Absa to assist you on an individual basis.

Recent Articles

Featured When to trade in your old car for a new one

You may have noticed that your car isn’t running as smoothly as it used to. This is particularly concerning if you’re hoping to sell it at a reasonable price, and buy yourself a modern alternative.

3 facts to consider when cancelling your contract

If you’ve ever had a relationship end in a bit of a mess, you’ll know that some people are more difficult to break up with than others. The pain, the push back, the back and forth – it can be a difficult process.

How long does debt reflect on your credit score?

If you’ve ever had debt that you didn’t manage well, you may have wondered how long the debt would remain, or be retained, on your credit score. This is known as a “retention period” and it is governed by the law.

Deals

Full Body Massage at Dembalicious Spa

Price: R99
When: Mondays to Sundays
Where: Johannesburg

Two-Course Asian Dining for Two

Price: R269
When: Mondays to Sundays
Where: Cape Town

One-Hour Yacht Cruise with Waterfront Charters

Price: R99
When: Mondays to Sundays
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions