Consumers urged to know their rights as car repossession rate spike
This comes as more than 22,000 vehicles were repossessed in SA during the first six months of 2023
The National Financial Ombud Scheme is warning consumers facing financial hardship to familiarize themselves with their rights and available options. This is due to over 22,000 vehicles being repossessed in the country within the first half of 2023, as many families struggle to cope with increasing living expenses and mounting vehicle repayments.
Johannes Brouwer, an adjudication official from the NFO, explains that there are only two legal methods for banks to reclaim a vehicle from a customer. The first involves obtaining a court order, where the bank must follow the legal process, receive a judgment against the customer, and be granted permission to repossess the vehicle.
The second option is a voluntary process. If individuals are approached by banks claiming they will reclaim the vehicle due to arrears, Brouwer advises that if the bank does not possess a properly issued warrant of execution, the consumer is not obligated to surrender the vehicle.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
