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Questions About Payment Problems

Frequently asked questions about payment problems.

Arrear Accounts

Q

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

A

No. As the account holder, you remain liable for timeous payment of all instalments due in terms of the agreement you signed. It is the account holder's responsibility to let us know about any change of address in writing, so that the account holder can continue to receive statements and other communications from us. If we send you default payment information and receive no response, the account will be sent to our Collections and Recoveries Team to attend to same.

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

The months your account is frozen are added to your repayment period. This increases the interest repayable on your term, which may increase your instalments slightly.

Q

What happens when I increase/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/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 effect 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/residual on your loan, your instalments will be lower than if you have no balloon/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 is arrear interest?).
  • Collections costs: This is added when your account is more than two months in arrears and it is handed over to our Credit Control Department
  • External debt collector costs (EDC): You will have to pay these costs when your account is outsourced to external vendors for collection of the arrears on our behalf.
  • 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

As the account holder you remain liable for timeous payment of all instalments due in terms of the agreement you signed. It is also your responsibility to contact MFC should your account reflect as being in arrears.

Q

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

A

The balloon / residual amount and due date are reflected 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 / 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 due date of the very last instalment I have to pay different from all the previous instalment due dates?

A

The final instalment due date may differ depending on how the instalments were structured during the duration of your agreement. The due date of the last instalment is clearly indicated on your original agreement and is also shown on all the statements; however this is also subject to the conduct of the account for the duration of the credit agreement.

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 supply 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, an account must be settled in full before vehicle ownership is changed.

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/increase my instalments at any time?

A

Yes, but your application is subject to credit approval.

Q

Can I restructure the shortfall?

A

A shortfall balance can be restructured over a maximum period of 36 months, subject 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

As the account holder, you remain liable for timeous payment of all instalments due in terms of the agreement you signed. However, you can ask MFC Client Services (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 such a request is made. The fact that the account is in arrears will also be reflected 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, subject to certain terms and conditions freeze your payments for a maximum of three months. Kindly contact us and provide us with the following documentation:

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

Kindly contact us via e-mail at collections.res@mfc.co.za or via fax on 011 500 7235 or 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. Please call the Collections Department on 0860 879 900 to make an arrangement, which will be subject to certain terms and conditions.

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. You need to however take note of the fact that this option will have an impact on your profile at the credit bureau.

Q

How do I make manual payments on my account?

A

The standard way to repay your monthly instalments is by debit order. However, you can also pay your account with cash at any Nedbank branch or by internet transfer.

1. For Cash deposits visit your nearest Nedbank branch, complete a deposit slip with your 11 digit MFC finance account number and make your payment at a teller.

MFC vehicle finance account number e.g. 12345670001

2. When making an EFT payment via your internet banking website, select 'MFC, a division of Nedbank' on the bank approved beneficiary list. You must then capture your 11 digit MFC vehicle finance account number as the beneficiary reference before making the payment.

Beneficiary reference e.g. 12345670001

Debt Review Accounts

Q

If MFC terminates my debt review, how will I be informed of this?

A

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

  • you, the client;
  • the debt counsellor; and
  • the National Credit Regulator
Q

MFC declined the payment proposal that my debt counsellor presented and sent my counsellor a counter-proposal. What happens now?

A

Your debt counsellor reviews your financial situation again with a view to accepting our counter-proposal.

Once you have agreed with and accepted the counter-proposal, your debt counsellor will communicate acceptance of the proposal directly to our Debt Review Centre at debtreview@mfc.co.za

Should you be unable to meet the counter-proposal made by our Debt Review Centre, your debt counsellor will instruct an attorney to launch an application on your behalf for a debt order to be granted.

Q

My debt counsellor obtained a formal consent order from court confirming the agreed and accepted payment proposal. MFC has 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 your account has been reloaded or restructured in terms of the order, it should no longer reflect an arrear position.

Q

My debt review was terminated 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 satisfactory payment arrangement to repay the arrear amount as soon as possible and to continue paying the normal/increased instalment amount.

Remember, though, 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, and we won't be in a position to offer you a reduced instalment or an extended agreement period.

Q

Under what circumstances will my debt review be terminated?

A

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

  • no payment proposal plan has been received/finalised; or
  • no acceptance to a counter-proposal has been received; or
  • the debt counsellor has failed to enrol the matter in court; or
  • no payment is made; or
  • the payments made are lower than the proposed/accepted amounts.

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

  • there is no payment made in terms of the consent order; or
  • the payments made are lower than the amounts specified by the consent order.
Q

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

A

It remains your responsibility, even when you're under debt review, to ensure that we receive your payments in terms of either the accepted payment proposal or the debt review court order obtained. This is extremely important since non-paying clients under debt review run the risk of having their debt review processes terminated and losing their asset as well as the protection offered by the National Credit Act. It is also your responsibility to stay in contact with the debt counsellor to avoid any possible misunderstandings. In terms of the debt review process, the debt counsellor is the liaison between you and us. We can't be held liable for any lack of communication between debt counsellors and their clients.

Q

What are the consequences of debt review termination?

A

Unless you pay the full arrear amount to us immediately, we will apply for a court order to attach the vehicle.

You need to make a suitable payment arrangement to settle the full arrear amount and to continue with the payment of normal instalment amounts in terms of the original signed agreement.

If your debt review is terminated, you still have 10 days from the date on which the termination letters were sent to approach your debt counsellor for an acceptable payment proposal to be sent to us. The debt counsellor would also need to enrol the matter in court for a consent order.

Q

What does MFC do when it receives 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 provide your debt counsellor with the financial figures and account balances that he or she will need to review your account.

Q

What does MFC do when it receives the payment proposal from my debt counsellor?

A

Although the National Credit Act does not stipulate which payment proposals credit providers must accept, the credit industry, the debt counselling industry and the National Credit Regulator have agreed on a set of debt rearrangement rules. Credit providers therefore base their decision to accept a proposal on these rules and reserve the right to decline a debt review application.

MFC will consider the payment proposal if it is reasonable. If we decline the proposal from your debt counsellor, we will submit a counter-proposal with recommended payment.

Q

What does my debt counsellor do once MFC has accepted the debt review application and communicated the financial figures to my debt counsellor?

A

Your debt counsellor assesses your financial situation and issues a formal declaration in terms of the Form 17.2 to confirm your over-indebtedness. Your debt counsellor then makes a payment proposal to the credit providers, or even directly to court. The debt counsellor will submit the payment proposal directly to our Debt Review Centre at debtreview@mfc.co.za

Q

What happens once debt review has been completed?

A

While you are under debt review, the credit bureaus will flag your profile as being 'under debt review'. However, once you have paid off your debt, the debt counsellor will send a Clearance Certificate to the creditors and notify the National Credit Regulator (NCR), as well as the credit bureaus through the NCR Debt Help system. Credit bureaus will therefore be prompted to remove the 'under debt review' flag from your profile and you will be in a position to enter into credit agreements 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 his or her 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. He or she does 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 attempts 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 (overdue) amount.

Section 101 of the National Credit Act specifies that default charges may be imposed if you have defaulted on a payment obligation under the credit agreement. We are entitled to all interest (finance 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 raise 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

Why should debt counsellors use the services of a payment distribution agency (PDA)?

A

Debt counsellors may not collect money from clients or distribute payments to credit providers – both should be done only through NCR-accredited PDAs.

Q

After I visited my debt counsellor and he or she reviewed my situation, he or she sent a payment proposal to MFC and you accepted the proposal. What happens next?

A

Your debt counsellor must appoint a payment distribution agent to collect and distribute the funds to your credit providers in terms of the accepted proposal. The debt counsellor also prepares the matter to present it to court and obtain a formal consent/debt rearrangement order.

During this time payments are made and any submissions are forwarded directly to our Debt Review Centre at debtreview@mfc.co.za

The debt counsellor has 60 business days to finalise an acceptable payment proposal, failing which we are entitled to terminate the debt review process.

Q

Can I apply for debt review if I am unemployed?

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

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. However, we will only decline the second debt review application 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 and form for an order to be placed under debt review.

Q

How do clients and debt counsellors know that the correct payments have been made to the creditors?

A

Reports regarding payments made are electronically generated and can be accessed by debt counsellors, clients and creditors on the internet or by e-mail.

Q

How does the payment distribution agency (PDA) collect debt review clients' funds?

A

Funds are collected by the PDA by means of payroll deductions, authenticated early debit orders (AEDO), non-authenticated early debit orders (NAEDO), debit orders and stop orders, and EFTs and cash deposits made by the debt review client.

Q

How does the payment distribution agency (PDA) know which funds to pay to which creditors?

A

Payments are made to debt review clients' creditors based on a payment plan developed by the debt counsellors and agreed to by all the parties concerned.

Q

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

A

Yes, however this is subject to our approval. We need a written offer from your buyer and the sale will be subject to VAT.

Remember that the shortfall may be placed under debt review. If it is, the debt counsellor must submit a reduced payment proposal on the shortfall balance.

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. (Please note that MFC can't 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 or call +27 (0)11 554 2600/Toll Share: 0860 627 627 or 0860 NCR NCR.

Repossessions

Q

My vehicle has been repossessed. 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 pre-paid registered post within 10 business days of the date on which we received the vehicle.

Q

My vehicle was repossessed / sold. 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?

A

Where applicable, the following costs will be charged:

  • Storage costs which are levied on a daily basis;
  • Insurance costs;
  • Valuation costs;
  • A tracer fee;
  • A towing fee or driver's fee;
  • Repair costs;
  • Auctioneer's fees;
  • Legal costs;
  • Any other reasonable costs incurred.

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, provided 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

To get the vehicle back you must contact us within 15 business days from the date on which your vehicle was repossessed. You need to indicate your intention to effect payment of the arrears and necessary charges and furthermore your intention to re-take possession of the vehicle. The release of the vehicle to you will be subject to certain terms and conditions.

You need to provide us with the following documentation to enable us 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;
  • Identity document;
  • Valid driver’s licence;
  • Proof of your operating licence (if you are a taxi driver);
  • Proof of payment (no cheque payments are accepted);
  • Banking details for us to activate a debit order against your account.
  • In the event that you are unable to personally collect the vehicle, we require the driver’s license and identity document of the person whom will collect the vehicle, as well as a letter of authority from yourself 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 identity document and driver’s 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 cash and send us proof of payment, you don't have to wait for the clearance period to expire before we can release the vehicle to you. 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 funds will reflect on our statement the following day and therefore a clearance period of one day will apply. 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 valuer, is just an estimation of the value of the vehicle. The valuer looks at the physical condition of the vehicle 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. On the day of the auction the vehicle is sold to the highest bidder. The proceeds from the auction will be allocated to your account and will be utilised to cover the outstanding costs. You are required to pay whatever is still owed after the sale of the asset (the shortfall).

Q

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

A

Unfortunately not. The stores at which the vehicles are kept are not open on weekends or public holidays. They are open from 08:00 to 16:00 on Monday to Friday.

Q

How does non-payment of arrears / repossession / sequestration / liquidation affect my credit record?

A

By law we are required to submit information about the conduct of 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. We will however notify you via sms or e-mail of the auction date and venue prior to the auction taking 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 driver’s licence with you. At the store you will be asked to sign a release note and an Agreement of Re-instatement. You can then take possession of the vehicle. Please note that we use overnight storage in smaller areas. Therefore the vehicle might be moved to an auction house, for example in Johannesburg.

Legal Accounts

Q

If I die, can someone take over my monthly instalments / repayments?

A

No. If you are deceased, your agreement with us is cancelled. However, we allow for the reasonable finalisation of your estate. Payment of the account must be kept up to date by either your relatives and next of kin or the Executor of the Estate until we receive full settlement of the account. Your relatives, next of kin or the Executor of your Estate is required to supply us with the following:

  • current proof of comprehensive insurance;
  • a copy of the identity document and driving licence of the person who is using the vehicle; and
  • the address where the vehicle is ordinarily kept.

The Executor of the deceased estate needs to furthermore furnish us with the following documentation:

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

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

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 provide us with proof of such 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 obtained against you.
Q

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

A

Yes, you can. This can be done subject to certain terms and conditions. Your MFC consultant will provide you with the required documentation as well as the amount you must pay to have the agreement reinstated.

Q

The vehicle is not in my possession. Must I still 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. If the vehicle is in the possession of a third party, you will be in breach of your agreement with MFC.

Q

What is a tracking device?

A

A tracking device is electronic equipment fitted to the vehicle that makes it possible to track the whereabouts of the vehicle in the event that it is stolen or hijacked.

Q

What is a written off account?

A

We will move your account to the Written Off Accounts Department to try and recover the outstanding debt, if any of the following takes place:

  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, a pay-out is made by the insurance company and you fail to 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 NCA account in terms of which the proposals / 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.
Q

What is depreciation?

A

Depreciation is the effect that wear and tear, usage, mileage and economic conditions have on the value of your car.

Q

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

A
  • Let us know that you are going to sell the vehicle privately.
  • Meet with the buyer so that he or she can view the vehicle.
  • Accompany the potential buyer if he or she wants 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 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/pay the funds.
  • 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 documentation.
  • 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

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

A

The terms and conditions are included in the policy document, which was sent to you when you took out the policy. You can also ask the underwriter for a copy.

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 advised us, in writing, of the change in your chosen physical address. You should also have sent us the required FICA documentation (such as a utility bill not older than three months).

If you didn't follow the correct process to notify us of your change of physical address, and if we subsequently trace you to an address that is different from your last known physical address, the summons will still be served at your last known physical address which we have on records. We are not allowed to change your address details if you do not ask us to do so and send us the necessary FICA documentation to support your request.

Q

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

A

We can only deregister the vehicle once the insurance company has sent us a 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 automatically be impacted 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 amended 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. However, you can seek 'manual approval' by speaking to us rather than using the automated process. Consideration will be done subject to 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, it is imperative that you disclose all your monthly expenses when completing the application for finance form 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/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 do you raise interest and calculate the balance on a written off account?

A

No interest is levied on the outstanding balance of such an account.

Q

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

A

According to the National Credit Act we are obliged to submit information to the credit bureaus on how you have managed your account. This may adversely affect your future credit worthiness.

Q

How long does a judgment stay on my name?

A

A judgment stays on your name for 30 years, if you do not apply for it to be rescinded (set aside or cancelled).

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. Will I remain liable for payment on my old account if the dealer does not settle my old 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

If you want to avoid further legal action, you need to choose one of the following options:

  • pay the arrears on your account, plus any legal costs incurred; or
  • surrender the vehicle voluntarily (i.e. agree to give the vehicle back to us); or
  • 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 inter alia request the Court for an order for the attachment of the vehicle.

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, it won't happen automatically. You remain liable as surety for the indebtedness of the company toward 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 judgment will be obtained against you). Should the summons not be defended, we will also ask the Court for inter alia an attachment order (a warrant of delivery) – this means we will apply for permission to take the vehicle back.

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 that:

  • 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, notwithstanding the occurrence of the above.

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

Kindly obtain as much information as you can from the Licensing Authorities and then contact MFC Client Services on 0860 879 900, who will refer you to the correct department for the required assistance.

Border Letters

Q

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

A

Please contact us before you leave. We will provide you with the documentation you need to cross the border using your vehicle. You are however required to provide us with current proof of insurance upon submission of such a request.

Contact Us

p0860 879 900
p0860 879 900
p0860 879 900
p0860 111 159
p0860 879 900
p011 879 9321
p0860 879 900

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