Plot thickens in R699 car saga

MickeyD

MickeyD

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Consumers in the Eastern Cape and around the country, who are affected by the collapse of the R699 car scheme, will approach their banks collectively to demand their original vehicle finance applications.

Earlier this month, the Port Elizabeth High Court heard that a class action should be brought against several banks to declare the contracts of hundred of participants in the car scheme, null and void.

Judgement in the matter has been reserved.

The court action follows the collapse of the agreement between Hong Kong based, Blue Lakes and the local Satinsky Group, which marketed the subsidised scheme in South Africa.

Consumer Activist, Simon Lapping, says consumers from Port Elizabeth and East London will approach Absa, Nedbank and Standard Bank to demand access to their application forms.

Lapping says a number of consumers were previously denied access to details of the loan process for reasons unknown to them.

"On Saturday the 30th August they will be going to the banks and they will be demanding their right under the "access to information act" for a copy of the regional application form whereby their bank loan was approved on. The reason we are doing this is because the banks have decided to start stalling this process with some banks refusing to hand over applications."

Lapping added that the application forms he had seen, shows that pertinent details were altered in order to allow the application for finance to be approved.

"When I started getting some of these applications forms it became very clear to me that a lot of the information on the application forms were altered. I went to go see ABSA Bank and Motor Vehicle Finance at the time about these discrepancies. In our meetings there was nobody to tell me how information was verified." he added.
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http://www.algoafm.co.za/article.aspx?id=10386
 
A racket where the group sold some 29000 cars, earning commission on the sale of each vehicle plus (I suspect) a much greater commission on each finance agreement.

No cash pool and any advertising rebates paid to buyers from ongoing car sales.

A true Ponzi scheme and, out of all the greedy banks who eagerly jumped on board, Wesbank was the only one that had the ethics to reject it as being unsustainable.

So much for the FSB who should have woken up to an operation like that.

I wonder why nobody has been arrested.
 
nightjar said:
A racket where the group sold some 29000 cars, earning commission on the sale of each vehicle plus (I suspect) a much greater commission on each finance agreement.

No cash pool and any advertising rebates paid to buyers from ongoing car sales.

A true Ponzi scheme and, out of all the greedy banks who eagerly jumped on board, Wesbank was the only one that had the ethics to reject it as being unsustainable.

So much for the FSB who should have woken up to an operation like that.

I wonder why nobody has been arrested.
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Is there proof of illegal dealings (yet)?
 
The consumers could be onto something with this action. How else would they know if their applications were altered?
 
MickeyD said:
The consumers could be onto something with this action. How else would they know if their applications were altered?
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Ive seen quite a few altered applications which even go as far as to fake initials on added changes to the contract.
 
midnightcaller said:
Silly question.
Who would make alterations to the applications?
And why?
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I had my application for a car loan with wesbank received different (before final agreement) to what was agreed on. It took of course myself to revert it back the original agreement by submitting proof before it was fixed and then I signed.

If that can happen then I would not be surprised...
 
midnightcaller said:
Silly question.
Who would make alterations to the applications?
And why?
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Only reason i can think of is to change amounts... Either on the purchase price (to inflate it and let the seller take the extra...) or to mess with the affordability numbers so it passes the NCA checks.
 
JustinB said:
Only reason i can think of is to change amounts... Either on the purchase price (to inflate it and let the seller take the extra...) or to mess with the affordability numbers so it passes the NCA checks.
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In the case of this situation its clearly the latter.
 
JustinB said:
Only reason i can think of is to change amounts... Either on the purchase price (to inflate it and let the seller take the extra...) or to mess with the affordability numbers so it passes the NCA checks.
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Does the NCA actually do any checking? Most other authorities are rather lax when it comes to this sort of thing.
 
I heard on the radio, that some R699 car-users managed to get their loan-applications and the deal-sheet was loaded with high end audio/GPS systems and other extras which where never fitted into the cars.
 
MagicDude4Eva said:
I heard on the radio, that some R699 car-users managed to get their loan-applications and the deal-sheet was loaded with high end audio/GPS systems and other extras which where never fitted into the cars.
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So crazy. The average person buying vehicle's like this (low value), are very unlikely to customise it to this extent. I question how these deals passed. Whoever deliberately involved themselves in this should be roasted and fined significantly.
 
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MagicDude4Eva said:
I heard on the radio, that some R699 car-users managed to get their loan-applications and the deal-sheet was loaded with high end audio/GPS systems and other extras which where never fitted into the cars.
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I took that to believe they were charged astronomical amounts for factory fitted items like aircon and radios etc (some people paid up to R3500 for a factory fitted CD player) and metallic paint etc???
 
Mod_note: Off topic posts removed

MickeyD said:
Have you noticed that Gary and I were granted access to the SAPA feed to post articles in CA? I participate in some articles with more vigour than others... that's my prerogative.
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I'm quoting this one for reference.
 
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That the banks have been trying to avoid handing over the paperwork shows they have something to hide. Undoubtedly they been looking it over internally, and must by now have realised they've got themselves a real problem. Otherwise they would just hand it all over.

The court action follows the collapse of the agreement between Hong Kong based, Blue Lakes and the local Satinsky Group
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More like they made their money, then shut it down when the ponzi scheme was ready to collapse on its own.

midnightcaller said:
Silly question.
Who would make alterations to the applications?
And why?
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In some cases they appear to have submitted the application electronically, with the figures adjusted to make the applicant eligible for a loan, then after the finance has been granted and they've already supplied the car they've had the customer sign a loan application form that contains the real figures. In that case getting the signed paperwork is not going to be enough. They may have to go through the banks' computers.

MagicDude4Eva said:
I heard on the radio, that some R699 car-users managed to get their loan-applications and the deal-sheet was loaded with high end audio/GPS systems and other extras which where never fitted into the cars.
Click to expand...
Definitely evidence emerging of overcharging.
 
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