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Questions About Payment Problems

Find out more about common payment problems and your options with MFC.

Arrear Accounts

Q

Can I cancel my debit order?

A

We require you to pay your account by debit order if you want to receive vehicle finance and you may not cancel the debit order. If you change your banking details, please contact the bank and give us with new banking details.

Q

Can I let another party take responsibility for the vehicle and instalment repayments while the account is still in my name?

A

No. As the account holder you will be in breach of the agreement if you hand over the vehicle and payment responsibility to another party without our written permission. Without exception, you must settle an account in full before you change vehicle ownership.

Q

Can I restructure my balloon payment before it is due?

A

Yes, subject to certain terms and conditions. Three months before your balloon payment is due we will send you a quotation for your instalment over different terms. The terms for restructure on offer are 6, 12, 18, 24 and 36 months.

Q

Can I restructure my contract to reduce or increase my instalments at any time?

A

Yes, but you will have to get credit approval first. Please send an email to Collections.res@mfc.co.za or phone us on 0860 979 900.

Q

Can I restructure the shortfall?

A

A shortfall balance can be restructured over a maximum period of 36 months, but you will have to get credit approval and adhere to certain terms and conditions.

Q

Can my instalment be frozen or go unpaid for a month if I go on maternity leave or for any other reason?

A

No. But you can phone MFC Client Services on 0860 879 900 to help you set up a payment plan through which you pay the due amount over a few months (usually no more than three months). Certain terms and conditions will be applicable when you make such a request. The fact that the account is in arrears will also show on your MFC account payment profile and on the records of all credit bureaus, which could negatively affect you.

Q

How can you help me if I no longer have a source of income and I cannot pay for a few months (e.g. because of job loss due to dismissal, retrenchment, maternity leave or suspension)?

A

If you cannot pay your account for one of the above reasons, we can, if you adhere to certain terms and conditions, freeze your payments for a maximum of three months. Contact us and give us the following documents:

  • Letter specifying your request
  • Letter of retrenchment
  • Letter of unpaid maternity leave
  • Doctor's note
  • Proof of unemployment insurance fund (UIF)
  • Police affidavit containing all the facts at hand.

Send an e-mail to collections.res@mfc.co.za or phone us on 0860 879 900.

Q

How can you help me when I'm having financial trouble and I have fallen into arrears?

A

If you have already fallen into arrears, our mandate is to collect all outstanding arrear amounts within 15 days from the day of default. Call the Collections Department on 0860 879 900 to request a restructure on your account, but you will have to adhere to certain terms and conditions.

Q

How do I make manual payments on my account?

A

The standard way to repay your monthly instalments is by debit order. But you can also pay your account with cash at any Nedbank branch or by internet transfer. Please click here to see the various ways you can make manual payments: MFC Banking Details - MFC 

Q

I can no longer afford to pay for my car. What are my options?

A

Not paying your instalments is a breach of contract and may eventually lead to the repossession of your car. We suggest you avoid this by selling your car privately for the best possible price and settling the account. Alternatively you can voluntarily surrender your car to the bank and we will sell it on auction to the highest bidder. But this option will affect your profile at the credit bureau.

If you can no longer afford the monthly instalments and decide on voluntarily surrendering your car, you can phone MFC Client Services on 0860 879 900, who will refer you to the correct department for help.

Q

Is it MFC's responsibility to notify clients of arrears on their accounts?

A

Yes it is our responsibility to notify you, but it is your responsibility to maintain your account and to let us know if you have problems to pay.

As the account holder, you remain liable for paying all installments in time under the agreement you signed. It is your responsibility to let us know about any change of address in writing, so that you can continue to receive statements and other communications from us. If we send you information about a default payment information and receive no response, we will send the account to our Collections and Recoveries Team to attend to it.

Q

What are the implications if I voluntarily surrender my car?

A

Your car will be valued and sold to the highest bidder at a public auction. Should the amount raised on auction not cover the whole settlement amount, you will be liable for the shortfall. Your name will be listed with the credit bureaus until the outstanding balance is settled in full

Q

What happens to the balance if I freeze my account?

A

We add the months your account is frozen for to your repayment period. This increases the interest repayable on your term, which may increase your instalments slightly.

Q

What happens when I increase or decrease my instalments?

A

If you increase your monthly instalments the overall balance due by you will decrease quicker, which means that the total interest payable will be less. Decreasing your instalments will have the opposite effect.

Q

What is a balloon payment or residual?

A

A balloon payment or residual is a lump sum which is calculated with your monthly instalments when you apply for finance with us. This amount will be due at the end of the term of the agreement. The benefit of a balloon payment or residual is that you pay reduced monthly instalments to us until the balloon payment or residual is due. For example, if you purchase a vehicle for R100 000 and choose to have a 25% (R25 000) balloon or residual on your loan, your instalments will be lower than if you have no balloon or residual.

Q

What is arrear interest and why do I have to pay it?

A

You're charged arrear interest if you failed to meet any of your repayments. The terms and conditions of your agreement make this clear. Arrear interest is a monthly amount that Section 101 of the National Credit Act entitles us to charge you on an overdue amount on your account. Arrear interest is charged until the overdue amount has been paid.

Q

What other charges may be debited to my account when I have fallen into arrears?

A
  • Arrear interest (explained under 'what arrear interest is').
  • Collections costs: This is when when your account is handed over to an external debt collector to collect on our behalf. They will bill us and you will be held liable for these costs.
  • Valuation costs: These costs will be added when we valuate your car in preparation for auction.
  • Dealer stock: This is the cost added after repossession, but before the auction when we deregister you as the owner so that you do not get fines and do not have to pay licensing fees.
  • Storage costs: You pay these charges for storing your car on the premises of external auctioneers or storage facilities.
Q

Why am I receiving SMSs if I have made a payment?

A

Certain types of payments only reflect on an account after 48 hours. We might not have seen the record of your payment as yet, and therefore we sent you an SMS asking you to contact MFC Client Services (0860 879 900) to arrange payment of the overdue amount.

Q

Why didn’t anyone contact me about the arrears on my account?

A

When an account goes into arrears, we write to you and send you ongoing SMS's. As the account holder you remain liable to pay installments on time and it is also your responsibility to tell us if your contact details have changed.

Q

Why didn’t anyone notify me that the balloon or residual were due for payment?

A

As soon as the ballon payment becomes due, and is not paid, your account will go into arrears and one of our consultants will contact you to restructure your account. The balloon or residual amount and due date are shown on your signed agreement as well as on your statements.

Q

Why do I have to hand the vehicle back to the bank on liquidation or sequestration? Can't I keep the vehicle and continue with payments even though I have been sequestrated or my company has been liquidated?

A

No, by law you cannot keep the vehicle. Your vehicle agreement is cancelled when the company goes into liquidation or when your estate is sequestrated. All the affairs of the company are then under the control of the liquidator, which means only the liquidator can make decisions about assets that have been handed over to the estate. When an individual’s estate is sequestrated, a trustee or curator is appointed to sort out the individual's financial affairs and make decisions about the assets assigned to the estate.

Q

Why is the amount on the very last instalment I must pay different from all the previous instalments?

A

The final instalment amount may differ depending on how the instalments were structured during the duration of your agreement. The amount due on the last instalment is clearly indicated on your original agreement and is also shown on all the statements.

Debt Review Accounts

Q

Can I change to another debt counsellor?

A

You may change your debt counsellor, but we reserve the right either to accept or decline the second debt review application, as the National Credit Act doesn't make any provision for a client to change debt counsellors. But we will decline the second debt review application only if we haven't been receiving reasonable monthly payments on the account.

If a debt counsellor rejects an application, you may, in terms of section 86(9) of the National Credit Act, apply directly to the Magistrate's Court in the prescribed manner for an order to be placed under debt review.

Q

How can you help me if I no longer have a source of income and I cannot pay for a few months (eg because of job loss due to dismissal, retrenchment, maternity leave or suspension)?

A

One of the most important requirements for debt review is being able to prove that you can pay your creditors a reasonable amount. You will unfortunately not be able to go under debt review if you do not have an income. If your partner is employed, you could submit a joint application.

Q

How will I know that the correct payments are being paid to my creditors?

A

You can contact your debt counsellor to get a balance and payment statement from the elected payment distribution agent to make sure that the correct payments are made to your credit providers. The debt counsellor will tell you about any disputes based on the statements received from the payment distribution agent.

Q

How will I know that the Payment Distribution Agency (PDA) collected money for my debt review payment plan?

A

Money will be collected by your designated PDA by means of payroll deductions, authenticated early debit orders (NAEDO), non-authenticated early debit orders (NAEDO), debit orders and stop orders, EFTs and cash deposits made by the debt review client.

Q

I am under debt review. Am I allowed to sell my vehicle for less than the outstanding balance to reduce the outstanding balance and the payments that I need to make under debt review?

A

Yes, but we will have to approve it first. You will have to pay the shortfall as agreed with your debt counsellor, either in terms of the payment rearrangement plan or the granted consent or debt rearrangement order. if you wish to pay a lower monthly instalment, consult with your debt counsellor.

Q

I would like to apply to be placed under debt review so that I can pay reduced and affordable instalments. How do I go about this?

A

You should approach a debt counsellor. (We cannot approach a debt counsellor on your behalf.) To find a debt counsellor you can visit the website of the National Credit Regulator at www.ncr.org.za 

Q

If you end my debt review, how will I be told of this?

A

When we terminate an account from debt review, we will forward a termination letter via prepaid registered post to:

  • you;
  • the debt counsellor; and
  • the National Credit Regulator.
Q

My debt counsellor got a formal consent order from court confirming the agreed and accepted payment proposal. You received this formal consent order. What is the next step?

A

Once we have received the formal consent order granted by the court, we will either reload or restructure your account in terms of the consent order.
Once we have done that, it should  no longer show you are in arrears.

Q

My debt counsellor reviewed my financial situation and gave you a payment proposal plan that you have accepted. What happens next?

A

We will implement the restructured terms of the agreement in line with the proposal and give your debt counsellor an acceptance letter of the repayment plan we suggest. The repayment plan will be uploaded on the payment distribution agent’s system to collect and distribute payment. The debt counsellor will set the matter down in a Magistrate's Court to get either a consent order or debt rearrangement order.

Q

My debt review was ended, and I don't want to communicate with the debt counsellor anymore. May I approach MFC directly?

A

Yes, you may approach us directly to make a payment arrangement to repay the arrear amount as soon as possible and to continue paying the normal or increased instalment amount.

But remember that if the debt counsellor is excluded, your account is no longer formally under debt review as described in Section 86 of the National Credit Act. It means we won't be able to offer you a reduced instalment or an extended agreement period.

Q

Under what circumstances will my debt review be ended?

A

We will terminate the debt review if, after 60 business days:

  • we have not received or finalised a payment proposal plan;
  • we have not received your acceptance of a counterproposal;
  • the debt counsellor has not enrollled the matter in court; 
  • no payment is made; or
  • the payments we receive are lower than the proposed or accepted amounts.

We may terminate the debt review process even after a consent order has been granted, if:

  • we dont receive any payment in terms of the consent order; or
  • the payments we receive are lower than the amounts the consent order specify.
Q

What are my responsibilities while I'm under debt review?

A
  • Ensure that the debt counsellor of your choice is registered with the National Credit Regulator (NCR).
  • Debt review is not a payment holiday and you must still pay your debt at reduced installments.
  • Where possible, do not borrow, but downgrade your expenses and cut out nonessentials.  
  • If under debt review, you cannot apply for futher credit nd your credit bureau profile will show a debt review flag until a clearance certificate is issued.
  • Avoid underpaying while under debt review to avoid termination by credit providers.
  • If your circumstances change, always tell your debt counsellor. 
  • If you cannot get hold of your debt counsellor, contact or notify the NCR immediately.
  • Always take charge of your finances and know how your money is paid to credit providers each month.
Q

What are the consequences of debt review termination?

A

The National Credit Act (NCA) determines: 'If a consumer is in default under a credit agreement that is being reviewed in terms of this section, the credit provider, in respect of that credit agreement, may give notice to terminate the review at any time, at least 60 business days after the date on which the consumer applied for the debt review.'

From the application date, after the expiry of 60 business days, a credit provider may end an account that is in arrears from the debt review process. The client must be in default with the credit agreement to be terminated. This implies that the credit provider can after termination proceed with legal action to enforce the rights under that credit agreement.

As soon as a credit provider terminates debt review, the protection the client enjoyed under the NCA comes to an end.

Q

What do you do when you receive the Debt Review Application (Form 17.1) from my debt counsellor?

A

We make a note on your MFC account that you have applied for debt review. We do this to avoid any further collection or legal action in terms of your account. We also give your debt counsellor with the financial figures and account balances that they will need to review your account.

Q

What do you do when you receive the payment proposal from my debt counsellor?

A

When we receive a debt rearrangement proposal that meets the requirements of the Act and a debit order or stop payment cancellation instruction, we will do the following: 

  • Cancel all debit order deductions for the debt repayments.
  • Not apply setoffs against your bank account.
  • Within 10 business days accept the debt rearrangement proposal if it meets the minimum requirements of the Debt Restructuring Guidelines. 
  • Implement the restructured terms of the agreement in line with the proposal; or
  • Reject the proposal and give your debt counsellor a counterproposal with recommended payment; or
  • Give notice of our intention to legally oppose.
Q

What does my debt counsellor do once you have accepted the debt review application and communicated the financial figures to them?

A

Your debt counsellor should do an assessment in line with the Affordability Assessment Guidelines to determine if you are overindebted, and the amount available to repay debt.

If you are overindebted, your debt counsellor should notify us via Form 17.2 and send our Debt Review Centre a debt rearrangement proposal to proposal@mfc.co.za.

Q

What happens once debt review has been completed?

A

After completing the debt review process and your debt is completely paid off, your debt counsellor will issue you with a clearance certificate. The debt counsellor is legally required by the National Credit Act to remove the 'under debt review' flag from your credit profile within 21 business days of being notified that you are no longer under debt review. This will allow you to enter the credit market again.

Q

What is a debt counsellor?

A

A debt counsellor is a person who is registered with the National Credit Regulator and who is appointed to represent their client throughout the debt counselling process. The debt counsellor liaises with the client's credit providers to inform them of the application for debt review. They do this by issuing the credit providers with a debt review application (Form 17.1) and Form 17.2, informing them of the intention. The debt counsellor asks each creditor for a certificate of balance. Once this is done, the debt counsellor tries to negotiate a more affordable repayment plan with each credit provider on the client’s behalf. 

Q

What is the disadvantage of applying for debt counselling?

A

If you apply for debt counselling, you may not enter into any further credit agreements until all your current financial obligations are fulfilled and the debt counsellor issues you and your creditors with a clearance certificate in terms of section 71 of the National Credit Act. You will also be listed with the credit bureaus.

Q

What will the debt counsellor do when I visit him or her to discuss debt review?

A

The debt counsellor will notify all credit bureaus and credit providers of your application for debt review. The debt counsellor will also submit the Debt Review Application (Form 17.1) directly to MFC's Debt Review Centre at debtreview@mfc.co.za

Q

Why am I charged arrear interest while I'm under debt review?

A

Arrear interest is raised on an account whenever there is an arrear or overdue amount.

Section 101 of the National Credit Act specifies that default charges may be asked if you have defaulted on a payment obligation under the credit agreement. We are entitled to all interest charges, including arrear interest, until we have received the formal consent order granted by the court. Once we've received the formal consent order and either reloaded or restructured your account in terms of the consent order, we won't charge arrear interest on your account, unless we do not receive payments in terms of the consent order, which would result in a new arrear amount.

Q

You declined the payment proposal that my debt counsellor presented and sent my counsellor a counterproposal. What happens now?

A

Your debt counsellor reviews your financial situation again with the aim to accepting our counterproposal.

Once you have agreed with and accepted the counterproposal, your debt counsellor will let our Debt Review Centre know at proposal@mfc.co.za 

If you unable to meet the counterproposal made by our Debt Review Centre, your debt counsellor will instruct an attorney to apply on your behalf for a debt order.

Repossessions

Q

Can I collect my vehicle on a Saturday or a Sunday?

A

No. The stores at which the vehicles are kept are not open on weekends or public holidays. They are open from 08:00 to 15:00, Monday to Friday.

Q

How does it affect my credit record if I do not pay arrears, repossession, voluntary surrender, sequestration or liquidation costs?

A

By law we are required to submit information about how you handle your account to all the relevant credit bureaus.

Q

How soon will the vehicle be sold?

A

The vehicle can be sold after 15 business days from the date on which we posted you a section 127(2) fair value letter. If you want to respond to the valuation letter, you must do so within those 15 business days. If we don't receive a response from you within this time, we will sell the vehicle to the highest successful bidder at a public auction. But we will notify you via SMS or email of the auction date and venue before the auction takes place.

Q

I have paid the money that was due on the vehicle and sent you all the documentation you need to release the vehicle to me. What happens now?

A

Your MFC consultant will give you the details of the store where your vehicle is being kept. You will have to go to the store and take your identity document and driving licence with you. At the store you will be asked to sign a release note and an Agreement of Reinstatement. You can then take the vehicle. We use overnight storage in smaller areas, which means we might move the vehicle to an auction house in for example Johannesburg.

Q

My vehicle has been repossessed and/or voluntarily surrendered. What happens now?

A

Section 127 of the National Credit Act requires that we value the vehicle and send you a section 127(2) valuation letter via prepaid registered post within 10 business days of the date on which we received the vehicle.

The vehicle can be sold after 15 business days from the date on which we posted you a section 127(2) fair value letter. If you want to respond to the valuation letter, you must do so within those 15 business days. If we don't receive a response from you within this time, we will sell the vehicle to the highest successful bidder at a public auction. But we will notify you via SMS or email of the auction date and venue before the auction takes place.

Q

My vehicle was repossessed and sold on public auction. Do I still have to make payments?

A

You are responsible for any shortfall (amount still owing) on the account after the proceeds from the sale of the vehicle have been credited to your account and all costs owed have been debited. In most cases the sale proceeds does not satisfy the outstanding obligations due before the sale, so you remain liable for the outstanding amount until same is settled in full.

Q

What costs will I pay when my vehicle is repossessed or voluntarily surrendered?

A

Where applicable, the following costs will be charged:

  • Arrears on voluntary surrender.
  • Settlement, if repossessed with a warrant by sheriff.
  • Storage costs that are levied daily.
  • Valuation costs for an independent sworn valuator, according to section 127 of the NCA.
  • A tracer fee.
  • A towing fee or driver's fee.
  • Legal costs (If applicable).
  • Repair costs (If applicable);
  • Dealer stock and reregistration (all vehicles must be dealer-stocked, and reregistered into your name once released).
  • An administration fee.
  • Dekra and valet costs).

For a more accurate breakdown of costs, please contact the MFC consultant handling your account.

Q

What happens if the vehicle was sold for more than the balance owing?

A

The credit balance will be refunded to you after all costs have been debited to the account. This is if no other credit provider has a credit agreement with you for the same vehicle.

Q

What must I do to get my vehicle back?

A

You must contact us within 15 business days from the date on which your vehicle was repossessed. You need to indicate your intention to pay the arrears and necessary charges and your intention to take the vehicle again. Before we give you the vehicle, you will have to meet certain terms and conditions.

You need to give us the following documents to enable us to release your vehicle from storage:

  • Latest payslip and/or three months' bank statements.
  • Proof of current residential address, such as a utility bill (not older than three months).
  • Proof of current comprehensive insurance.
  • Your Identity document (ID).
  • Your valid driver’s licence.
  • Proof of your operating licence (if you are a taxi driver).
  • Proof of payment.
  • Banking details for us to activate a debit order against your account.
  • If you are unable to collect the vehicle personally, we require the driving licence and ID of the person collecting the vehicle, as well as a letter of authority from your authorising another person to collect the vehicle on your behalf.
  • Once we have received and accepted all your documentation, we will arrange collection of the vehicle from the store with you. Remember to bring your ID and driving licence.
  • If you pay by debit order, there is a clearance period of 10 business days to ensure the payment clears successfully. If you pay by electronic transfer, there is a clearance period of three days. If you pay by electronic transfer from a Nedbank bank account, the money will show on our statement the following day and a clearance period of one day will apply. All payments need to show in our Nedbank account before release. We will do a credit check to ensure that you can afford the instalments.

Q

Why is the valuation so low?

A

The valuation, which is undertaken by an independent sworn valuator, is just an estimation of the value of the vehicle. The valuator looks at the physical condition of the vehicle (the age of the vehicle, mileage, make and model, mechanical assessment or inspection report) and takes into consideration market conditions, which may vary from time to time, and the fact that the vehicle will be sold under forced market conditions.

Legal Accounts

Q

At what stage during an insurance claim do you deregister a vehicle?

A

We can deregister the vehicle only once the insurance company has sent us written instruction to do so. The insurance company must first assess the vehicle to determine the extent of the damage.

Q

Can I get approval for new finance if I have a written-off account on my record?

A

When you apply for finance using our automated approvals service, your chance of getting approval will be affected if there is a written-off account on your record. Even if the written-off account has been paid in full and the credit bureau record has been changed accordingly, or if the bureau removed the record two years after the debt was paid, the record of the written-off account will remain on our system. But you can seek 'manual approval' by speaking to us rather than using the automated process. We will consider your application if you meet certain terms and conditions.

Q

Do I have to disclose all my expenses when completing the application for finance to buy a vehicle?

A

Yes, so that we can do a comprehensive assessment of what you can afford.

Q

Do I have to have comprehensive insurance?

A

Yes. In terms of your signed agreement your insurance cover must be complete (or comprehensive). This means that it must cover your total outstanding financial obligations to us.

Q

Do I still have to pay my instalment or interest after I have been issued with a summons?

A

Yes. You remain liable for the full amount that is outstanding, as well as interest and costs.

Q

How does being issued with a summons affect my credit record?

A

According to the National Credit Act we must submit information on how you have handled your account to the credit bureaus, and this may negatively affect your future creditworthiness.

Q

How long does a judgment stay on my name?

A

For 30 years, if you do not apply for it to be set aside (Rescinded).

Q

I have traded in my old vehicle at the dealership where I purchased my new vehicle. The old vehicle is still under finance with another bank. Do I still need to pay my old account if the dealer does not settle that account?

A

Yes, it is your responsibility to ensure that the dealership pays any outstanding amount for your old vehicle at the other bank. You remain liable for payment of the account until it is settled in full.

Q

I received a summons. What are my options if I want to avoid further legal action?

A

You need to choose one of the following options:

  • Pay the arrears on your account, plus any legal costs incurred.
  • Surrender the vehicle voluntarily (that is, agree to give the vehicle back to us).
  • Negotiate a payment arrangement that suits both of us.

If you decide not to exercise any of these options, we will proceed with our legal action and request the court for an order to take the vehilce from you.

Q

I signed a surety document when I applied for finance on behalf of my company. I have decided to sell my company. Will the surety automatically be taken over by the new owner of the business?

A

No. You remain liable as surety for the indebtedness of the company towards us until your surety is uplifted and replaced. This can only be done with our help and intervention. We will do a formal assessment on the new owner's creditworthiness, subject to our credit approval policies.

Q

I was served with a summons. What happens now?

A

We will apply to the court for permission to end our agreement with you (in legal language, this means we will get a judgment against you). If you don't defend the summons, we will also ask the court for a judgment order (a warrant of delivery) – this means we will apply for permission to take the vehicle back.

Q

If I die, can someone take over my monthly instalments? (Deceased Estates)

A

No. Your agreement with MFC is cancelled immediately. But we allow for the reasonable finalisation of your estate. Either your relatives and next of kin or the executor of the estate must keep the payment of the account up to date until we receive full settlement of the account.

Q

If my vehicle is written off or stolen, do I still have to pay my monthly instalments while the insurance claim is being finalised?

A

Yes. Your agreement specifies that your instalments must be paid (even while an insurance claim is being finalised) until the account has been settled in full. When the full outstanding settlement amount has been paid, we will process any refunds that are due to you.

Q

MFC obtained judgment against me a few years ago. I have now settled my account in full. How do I go about setting aside the judgment obtained against me?

A
  • You must let us know that you have paid the account in full and give us with proof of  payment.
  • We will then provide you with a paid-in-full letter.
  • You will have to appoint an attorney at your own cost to rescind (set aside or cancel) the judgment against you.
Q

The Sheriff of the Court removed my vehicle. Can I get it back?

A

Yes. This can be done only if you adhere to certain terms and conditions. The contract has been terminated and therefore you have to settle the full amount to get the vehicle back, including all legal costs, External Debt Collectors (EDC) costs, storage costs as well as release fees.

Q

The vehicle is repossessed or voluntarily surrendered. Am I still liable to pay the legal costs?

A

Yes. You are still the owner of the vehicle and the risk in and to the vehicle remain your responsibility until the full amount specified by the agreement has been paid. You will therefore have to pay any costs incurred to recover the vehicle, and arrears on the account.

Q

What is a written off account?

A

An account is written off due to the following reasons:

  1. You can't pay the shortfall after the vehicle has been repossessed and sold at a public auction.
  2. You lodge an insurance claim, the insurance company made a payout and you do not pay the shortfall.
  3. There is an unpaid balance on a deceased estate account
  4. Neither you nor your vehicle can be traced.
  5. Your estate is insolvent and the final dividend is still outstanding.
  6. You have an National Credit Act (NCA) account in terms of which the proposals or debt rearrangement orders have been granted, but it does not warrant further interest calculations.
  7. You are making payments on a legal account that do not even cover the interest charged.

Your account will then be moved to the Recoveries Department to try and recover the outstanding debt.

Q

What must a relative or the executor do when the client has passed away? (Deceased Estates)

A

Call us on 0860 879 900 or send an email to Care@mfc.co.za to tell us, and give us the following information:

  • Current proof of comprehensive insurance.
  • A copy of the identity document and driving licence of the person who is using the vehicle. 
  • The address where the vehicle is ordinarily kept.

The Executor needs to give us the following documents:

  • A certified copy of the death certificate;
  • A certified copy of the deceased's identity document (ID);
  • A letter of authority from the Master of the Court Office confirming executorship. 

The MFC consultant managing the account will then contact the executor and discuss the options. The only way a deceased estate account can be taken over is if the executor applies for finance in their own capacity.

Q

What must I do if I want to sell my vehicle privately?

A
  • Let us know that you want to sell the vehicle privately.
  • Meet with the buyer so that he or she can view the vehicle.
  • Accompany the potential buyer if they want to test-drive the vehicle.
  • Sign a written agreement with full details of both parties to confirm terms and conditions of sale, and original identity documents (ID) must be verified.
  • Confirm the transaction and the correct settlement figure with the financier of the potential sale.
  • Accompany the potential buyer to the bank so that he or she can make the electronic transfer or pay the money.
  • Send us the proof of payment.
  • Check with us that the funds have been cleared and that you no longer owe us anything.
  • Arrange for collection or delivery of the original Natis document.
  • Sign duplicate change-of-ownership documents confirming buyer's and seller's detail so that the details can be updated at the licensing authorities.
  • Hand over the asset to the buyer once all the above steps have been completed.
  • Do not hand over the asset until you have verified and confirmed with us that the payment has been cleared.
Q

What must I do when my vehicle is in an accident or was stolen or hijacked? (Vehicle written off or stolen)

A

Call us on 0860 879 900 or email claims@mfc.co.za to tell us and give us the following information:

  • Insurer name.
  • Contact person.
  • Contact number.
  • Claim number.
  • Incident type: Is it written off or stolen?
  • Date of lose.
  • Time frames.
Q

What must I do when the vehicle owner has passed away? (Deceased Estates)

A

Call us on 0860 879 900 or send an email to Care@mfc.co.za to tell us. You will also need to give us the following information:

  • Certified copy of the death certificate.
  • Copy of the ID of the deceased.
  • Copy the marriage certificate, if married.
  • Executor appointment letter, if available.
  • Contact number of executor or next of kin.
Q

Where can I find the terms and conditions of the shortfall (or top-up) policy?

A

They are in the policy document that was sent to you when you took out the policy. You can also ask the underwriter for a copy. Send an email to collections.res@mfc.co.za or phone us on 0860 879 900.

Q

Why was my summons served at my old address?

A

Summons is served at your last-known domicilium (physical address) you provided on the Pre-Agreement Statement and Quotation together with the credit agreement. If you have moved since then, you should have told us, in writing, of the change in your physical address. You should also have sent us the required FICA documentation (such as a utility bill not older than three months).

Payment Takeovers

Q

I am no longer able to afford my monthly instalments. I saw an advertisement in the newspaper stating that a certain 'company' would take over my monthly instalments to ensure that I do not get blacklisted. Can I do that?

A

It is illegal to hand over your vehicle to a third party and arrange with them or enter into an agreement that they take over your instalments. You should also be aware of the following:

  • Payment-takeover companies may sell your vehicle to an unknown third party and then disappear with the proceeds from the sale and the vehicle
  • You remain liable for the outstanding balance until the account is settled in full, even if a company takes over your instalments.

Vehicle Registration Paper Problems

Q

I wanted to renew my vehicle licence at the License Department and was advised that I am no longer the registered owner of the vehicle.

A

Get as much information as you can from the licensing authorities and then phone MFC Client Services on 0860 879 900, who will refer you to the correct department for help.

If you become aware of any other fraud-related issues regarding your vehicle, phone MFC Client Services on 0860 879 900, who will refer you to the correct department for help.


 

 

Border Letters

Q

What must I do if I want to use my vehicle to visit one of our neighbouring countries?

A

Contact us before you leave. We will give you the documents you need to cross the national border. But you must give us current proof of insurance when you request the documents.

Your alternative is to request a cross border letter by logging onto the MFC Self Service Manage My Accounts - MFC

Contact Us

p0860 879 900
p0860 879 900
p0860 879 900
p0860 879 900
p0860 879 900
p011 879 9321
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