Volkswagen Financial Services SA (VWFS), which was ordered this week by the National Consumer Tribunal to pay back unlawfully levied fees charged to customers, is to appeal against the ruling. The tribunal ruled on Monday that the on-the-road admin and handling fees charged by Volkswagen Financial Services SA on consumer credit agreements were unlawful.

Yesterday, VWFS said it had taken external legal advice and was informed that it had good prospects of success on appeal.

'As a result, VWFS has noted an appeal against the order. The noting of the appeal will suspend the order of the tribunal and VWFS will not be making any refunds until the appeal is finalised,' the company said, according to TimesLIVE.

VWFS is a separate legal entity from Volkswagen SA. The National Credit Regulator had previously issued a compliance notice to the car financier in 2017.

The notice instructed them to refund consumers and submit an audit report to the regulator.

Full TimesLIVE report