Standard Bank to compensate a woman R5,000 for unfair car finance treatment.
Standard Bank has been ordered to compensate a customer R5,000 after the National Financial Ombud (NFO) found the bank prioritised its relationship with a car dealership over the fair treatment of its client.
While the bank’s actions were deemed technically legal under common law, the NFO found its failure to protect a vulnerable customer breached the foundational principles of fairness and equity enshrined in the Code of Banking Practice.
The matter began when the complainant purchased a motor vehicle for R511,660.00, financed through an instalment sale agreement with the bank. Almost immediately after delivery, the vehicle began experiencing persistent mechanical failures. Despite multiple repair attempts by the dealership, the defects could not be resolved.
Recognising the vehicle was a "lemon," the complainant and the dealership mutually agreed to cancel the sale, and the vehicle was returned. However, the dealership failed to refund the purchase price, leaving the consumer trapped in a financial nightmare - she no longer had the vehicle, but she remained fully liable for the monthly finance instalments owed to the bank.
