Local News
Petition for R699 car scheme─── 13:26 Sat, 23 Aug 2014
Duane Petrus Bloemfontein - A petition will soon be set up in support of the tens of thousands of South Africans who have been affected by the infamous R699 car scheme.
This follows the Port Elizabeth High court’s decision yesterday not to grant a class action against three banks and the Satinsky group.
The affected clients initiated the class action in a bid to have their contracts with the banks declared null and void, citing irresponsible lending.
Satinsky paid clients to drive a certain number of kilometres with advertising stickers on their cars.
The deal recently fell apart. Don Ross, an administrator at the Facebook page “I have been done in by ‘Drive a new car for R699 per month’, says they aim to get 100 000 signatures on the petition.
Ross says they are planning to appeal the court’s decision.
Meanwhile, Beel newspaper reported today that the owner of Satinsky 128 wants to sue WesBank for R20 billion.
Albert Venter claims WesBank allegedly disclosed confidential information of their financing scheme, breaking their confidential agreement.
WesBank was the only bank from the four big South African banks that did not get involved in the scheme. Standard Bank, Nedbank and Absa financed Satinsky cars.
Beeld reported that in July, WesBank CEO Chris de Kock said that there was concern about the company's business plan and that was why the bank did not get involved when approached.
He said it showed characteristics of a Ponzi scheme.
In the letter delivered to WesBank on Thursday, Satinsky 128 claim that on September 18, 2013, the bank disclosed confidential information to third parties. The names of the third parties where not mentioned.
In the letter delivered to WesBank on Thursday, Satinsky 128 claim that on September 18, 2013, the bank disclosed confidential information to third parties. The names of the third parties where not mentioned.
In the letter, Venter's lawyers claim that because of the disclosure, he lost R25 bn.
Beeld reported that it was information given to WesBank when Satinsky tried to get the bank involved.
The scheme offered to cut repayments on new cars to R699, if the motorists drove a minimum distance with pasted advertisements about the scheme on their cars.
The scheme collapsed in July and banks called for full repayments --amounts which were not affordable for those involved.
- Additional reporting by Sapa
Don Ross, an administrator at the Facebook page “I have been done in by ‘Drive a new car for R699 per month’:
