The Voice - Consumer's Voice

Do I owe them?

I have a query or a complaint to make, I bought a couch on hire purchase some time last year. I then defaulted. They then repossessed the couch and I was told since they took the couch they are going to sell it so I do not owe them. I just tried to apply for a loan only to realise that my name has been handed to ITC owing P10,471, I called the head of collections who told me that I have to pay this amount to clear my name and I asked him why would I pay such amount when they have already taken the couch and by the time they took the couch I tried to renegotiate but they did not want to listen. I asked as to why would I still owing, then he said that is how it is or else my name will remain blacklisted under ITC which I feel is not fair and it is double charge, why would I pay P10,471 on something I do not possess. They have taken the couch why should they list me. He also suggested that I pay P4,000 for them to at least clear my name and reactivate the account and I wondered which account was he referring to, as far as I am concerned I do not have an account with them. Kindly assist as I feel I am being treated unfairly and this is some kind of rip-off.

Unfortunately, this is exactly how hire purchase works.

You said “since they took the couch they are going to sell it so I do not owe them” but that’s not correct. When a store repossesses an item, they will then sell it and deduct the money they get from the balance you owe them. However, it’s important to remember that the repossessed item is now second-hand, perhaps not in the best condition and they’ll sell it to the first person who offers them some money. The amount they get will almost certainly only be a fraction of what you still owe. When you add on penalties, interest and debt collection and legal costs you can easily end up owing MORE than you did before the repossession.

I know it’s frustrating, particularly as you now owe money for something you no longer possess. I suggest you try again to negotiate a repayment plan that you can afford.

The lesson is that we should always do our best to avoid buying things on any form of credit if we can afford it. After all these years I still don’t understand why many of us won’t consider saving up and then buying second-hand household goods. We have no problem buying second-hand cars so why not other things as well? You can save a huge amount of money and you avoid the situation you’re now in. Let’s all change our mindset about spending money?

Is it legit?

Please check for me the authenticity of this page “Bank repossessed cars auction”. I found it on Facebook its in SA selling good cars but their prices are too good to be true.

Sometimes you can trust your senses. Not always, but sometimes. You should ALWAYS trust your senses when you think something is too good to be true, like you suspect with this Facebook page. That’s because you’re right.

I took a look at the page and yes, it does have some remarkable cars for sale at remarkable prices. For instance, they claim to be selling a silver 2017 Mercedes Benz C Class C220 that’s only done 51,000km for R75,000. That’s astoundingly cheap and if that was true, I’d be driving it right now. I did a little detective work and discovered the truth. The very same car, with the same registration number is actually a 2014 model, has done 84,000km and is on sale at a genuine car dealership in Johannesburg for R304,900. That’s a fair price for that car. I imagine it’s the same for every car they claim to be selling.

I suspect that this is nothing but an advance fee scam. They’ll demand some tax, duty of fee before you get the car and that’s what it’s all about, that money you pay them to get the car they don’t actually have. I’m really pleased that you realised it was too good to be true and have avoided being a victim. Please help us spread the word to everyone you know!