The National Credit Regulator (NCR) has directed BMW to refund its customers for charging them an on-the-road fee on credit agreements, says a TimesLIVE report. The regulator said it was not aware what the fee was for as BMW did not explain when it inquired. The charges ranged from R3 000 to R6 000. According to the regulator‚ the compliance notice instructs BMW Financial Services to refund consumers and submit an audit report to the NCR. Chief executive Nomsa Motshegare said the NCR will continue to conduct industry-wide investigations on the cost of credit to root out illegal charges and fees that consumers are charged.

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BMW Financial Services (SA) intends to challenge the compliance notice, according to a Business Day report. To challenge the notice, the company will have to apply to the National Consumer Tribunal to have it reviewed. BMW group product communications manager Edward Makwana said BMW Financial Services ‘disputes the contents of the notice issued by the regulator and will be objecting to the notice’.

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