Recommendation - 13 November 2017
Key Issues: Car Loan | Car finance lender | Illegal repossession of vehicle | Personal belonging not released | Theft from vehicle | Excessive enforcement costs | Reduced input tax credit
The FSP provided credit assistance to the consumer to enter into a mortgage.
- The consumer fell into default with its commercial car loan repayments and the FSP repossessed the vehicle.
- The consumer claimed that the vehicle was illegally repossessed and that they were prevented from collecting personal goods from the vehicle.
- The consumer also claimed that items were stolen from the vehicle after it was repossessed.
- The consumer claimed that the enforcement costs charged were excessive.
- We found that the FSP was entitled to repossess the vehicle and did so in accordance with the terms and conditions of the loan contract.
- We found that the FSP did not prevent the consumer from collecting his personal belongings from the vehicle.
- We are not the appropriate forum to consider the claim relating to items allegedly stolen from the vehicle.
- We found that the FSP was entitled to pass on enforcement costs it incurred in relation to the consumer’s loan.
- We found that the enforcement costs charged by the FSP were incorrectly applied to the loan account, as the FSP should not have charged the consumer for the reduced input tax credit rebate it was entitled to.