NCA Service Fee (R57 every month)

[j4ck455]

Perhaps this has been discussed before on MyBB but I can only find one thread that mentions it in passing.

I'm pissed off about having to pay R57 every month on my vehicle finance for no apparent reason at all (I certainly was never informed of this fee by the bank before taking out finance).

And it turns out that this fee is not compulsory.

http://www.iol.co.za/blogs/wendy-knowler-s-consumer-watch-1.1608/competition-what-competition-1.628205

National Credit Regulator CEO Gabriel Davel is very clear about misrepresentation on this issue.

[highlight]Telling consumers the fees are compulsory, in terms of the National Credit Act, is not only a blatant lie, he says, it's illegal.[/highlight]

IOW financial institutions can charge the fee but it remains optional in terms of the act, therefore stating that the fee is compulsory according to the act is a misrepresentation of what the act states.

 

[fdaniels]

Wait, what? The fee is optional?

 

[noxibox]

That fee is one example of where the NCA hurts borrowers. This fee used to be R5.70 before the NCA. Much of the act protects vulnerable borrowers, who are the majority.

 

[ice_cubes]

damn

 

[Juice]

The NCA forced the banks to abandon a lot of the fees (i.e. early settlement fee) they were using to make money from clients and gave them the administration fee as a replacement. The fee is optional and the act specifies a maximum amount. Wendy says the 'spirit' of the act was to encourage the banks to use variations in the fee as a competitive advantage, but the banks just all decided to charge the maximum anyway.

Juice

 

[fdaniels]

Yep, ball juice.

 

[Juice]

Yep, ball juice.

Eh what? Come again?

(muhahaha)

Juice