WL
Wayne L
1 reviews | Active since Feb 2021
10 Nov 2021, 13:13
Unjustified exorbitant charges
I write in disappointment once again regarding Motorite. To my review below, I was promised feedback on Monday the 8th of November 2022. I, to date have not received any feedback, despite my correspondence to their customer team reminding them about their promise to respond accordingly.
Hello
I purchased a vehicle 2 years ago and financed the sale through Wesbank. Added to the finance, was a Motorite motorplan that costed R69 831.45 for 3 year plan or 60000kms.
During the process of selling my vehicle I engaged Wesbank as well as Motorite as to what amount of this policy would be reimbursed to me as I still have 1 year left (12 months) on the policy. To date I had used R34 673.16 of the R69 831.45. this leaves a balance of R35 194.29 that was left on the policy.
Their formal response to me was that they would reimburse an amount R6 296.13. I was really shocked that they were taking R10 474.72 & R18 423.44 (total of R28 898.16) for commission and admin fees respectively. This is a staggering 41,38% charge which I find completely unjustifiable.
I have raised this issue of my dissatisfaction with them but they insist these are their charges. They have sent me recordings of the verbal agreement, as that serves as the binding contract. In the recording I do ask the consultant about ending the contract early and he did advise that there are commission and admin fess attached. However they did not at all indicate or mention the amount, percentage or manner in which these charges are calculated. To a layman I find that it should be their duty to inform potential customers of exorbitant and ridiculously high charges so that customers can make a more informed decision.
I humbly beg your assistance in this matter, as this situation has now put me out of pocket has in selling the vehicle i had to pay in R13 106,49 to settle the vehicle.
I eagerly await your response.
Many Thanks Wayne
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Motorite Administrators's replyOfficial
10 Nov 2021, 14:10Dear Sir, Below is our response that was sent to your personal email address on the 08/11/2021 at 08:45am along with supporting information. This letter served to confirm that we have reviewed the merits of your complaint that was received on the 04/11/2021. The product that forms the basis of this complaint is the Options Motor Drive maintenance plan administered by Motorite Administrators (Pty) Ltd. The maintenance plan provides cover for maintenance and mechanical repairs needed by the vehicle because of normal wear and tear and mechanical failure and the routine services as scheduled by the vehicle’s manufacturer. The maintenance plan incepted on the 16/10/2019 at 104 000 km and runs for a period of 3 years and up to 164 000 km – the expiry of this plan is dependent on whichever is reached first. During our investigation of this complaint, it was established that the sale of this product was facilitated telephonically through an independent company called, The Engine Room Direct Solutions (Pty) Ltd. whereby the product was marketed and sold to you. We have noted that as per the attached welcome pack it would appear that the relevant contract terms and conditions were duly issued within 30 days of plan purchase. Our records indicate that on the 09/09/2021 – you contacted Motorite and requested assistance with the cancellation of the plan as you will be selling the vehicle and you were provided with the relevant cancellation forms to complete and return along with supporting documents. On the 19/10/2021 – you contacted us to follow up on the progress of the cancellation and you were advised that upon cancellation of the maintenance plan your finance account will reflect an arears amount of R 43,677.17 VAT inclusive. Our records further indicate that on the 19/10/2021 – you contacted Motorite and requested that a manager call you back regarding the processed refund amount. On even date you advised that you no longer desired to cancel the plan as you were advised by Wesbank of the applicable refund amount that will be credited into your finance account. You were further advised that you will need to query the refund amount with Wesbank. On the 27/10/2021 – you were provided with the breakdown of the refund amount via email. Our records indicate that on the 02/11/2021 – you were contacted by the customer services supervisor and you advised that you were not happy with the refund amount and the matter was escalated to the cancellations department. The cancellations department advised that admin fees are calculated over the duration of the contract therefore, if the plan is cancelled within the first 3 months of cover, we refund full fees. However, if the plan is cancelled after 90-days, we have the right to earn full admin fees and these fees are calculated for the duration of the plan – in this instance the product is a 3 year/60 000 km cover therefore, the plan was active for almost two years and we earned full admin fees for the duration of the 3 years. We do not refund the remainder of the one year’s admin fees and the refund amount is calculated correctly as per the funds on our records. Furthermore, as per the attached point of sale voice recordings, at 05:15 the sales agent advised that you may cancel the plan at any time, a pro-rata refund will be done minus claims paid for, commission, admin fees and whatever is left gets credited towards his finance account with Wesbank. The voice recording provided is a true copy of the original. In need, the original may be attended to at our offices. This voice recording contains privileged and confidential information intended only for the use of the customer and/or the customer’s duly authorized representative, as named above. Any review, retransmission, dissemination, copying, disclosure or other use of, or taking of any action in reliance upon, this information by person or entities other than the intended recipient and the intended purposes as requested is prohibited. After careful consideration of all the factors pertaining to your complaint, we regret to advise that our decision remains unchanged. Should you not be happy with the outcome, you are at liberty to seek further recourse that is made available to you. Thereafter you may institute legal proceeding within 180 Days of receipt of this letter, failing which we will have no further liability in terms of this policy. Should you require any further details, please contact the Risk Management Complaints Division. Kind Regards,
Risk Management Complaints Division
Risk Management Complaints Division
Motorite Administrators's reply10 Nov 2021, 14:10
Official
Dear Sir, Below is our response that was sent to your personal email address on the 08/11/2021 at 08:45am along with supporting information. This letter served to confirm that we have reviewed the merits of your complaint that was received on the 04/11/2021. The product that forms the basis of this complaint is the Options Motor Drive maintenance plan administered by Motorite Administrators (Pty) Ltd. The maintenance plan provides cover for maintenance and mechanical repairs needed by the vehicle because of normal wear and tear and mechanical failure and the routine services as scheduled by the vehicle’s manufacturer. The maintenance plan incepted on the 16/10/2019 at 104 000 km and runs for a period of 3 years and up to 164 000 km – the expiry of this plan is dependent on whichever is reached first. During our investigation of this complaint, it was established that the sale of this product was facilitated telephonically through an independent company called, The Engine Room Direct Solutions (Pty) Ltd. whereby the product was marketed and sold to you. We have noted that as per the attached welcome pack it would appear that the relevant contract terms and conditions were duly issued within 30 days of plan purchase. Our records indicate that on the 09/09/2021 – you contacted Motorite and requested assistance with the cancellation of the plan as you will be selling the vehicle and you were provided with the relevant cancellation forms to complete and return along with supporting documents. On the 19/10/2021 – you contacted us to follow up on the progress of the cancellation and you were advised that upon cancellation of the maintenance plan your finance account will reflect an arears amount of R 43,677.17 VAT inclusive. Our records further indicate that on the 19/10/2021 – you contacted Motorite and requested that a manager call you back regarding the processed refund amount. On even date you advised that you no longer desired to cancel the plan as you were advised by Wesbank of the applicable refund amount that will be credited into your finance account. You were further advised that you will need to query the refund amount with Wesbank. On the 27/10/2021 – you were provided with the breakdown of the refund amount via email. Our records indicate that on the 02/11/2021 – you were contacted by the customer services supervisor and you advised that you were not happy with the refund amount and the matter was escalated to the cancellations department. The cancellations department advised that admin fees are calculated over the duration of the contract therefore, if the plan is cancelled within the first 3 months of cover, we refund full fees. However, if the plan is cancelled after 90-days, we have the right to earn full admin fees and these fees are calculated for the duration of the plan – in this instance the product is a 3 year/60 000 km cover therefore, the plan was active for almost two years and we earned full admin fees for the duration of the 3 years. We do not refund the remainder of the one year’s admin fees and the refund amount is calculated correctly as per the funds on our records. Furthermore, as per the attached point of sale voice recordings, at 05:15 the sales agent advised that you may cancel the plan at any time, a pro-rata refund will be done minus claims paid for, commission, admin fees and whatever is left gets credited towards his finance account with Wesbank. The voice recording provided is a true copy of the original. In need, the original may be attended to at our offices. This voice recording contains privileged and confidential information intended only for the use of the customer and/or the customer’s duly authorized representative, as named above. Any review, retransmission, dissemination, copying, disclosure or other use of, or taking of any action in reliance upon, this information by person or entities other than the intended recipient and the intended purposes as requested is prohibited. After careful consideration of all the factors pertaining to your complaint, we regret to advise that our decision remains unchanged. Should you not be happy with the outcome, you are at liberty to seek further recourse that is made available to you. Thereafter you may institute legal proceeding within 180 Days of receipt of this letter, failing which we will have no further liability in terms of this policy. Should you require any further details, please contact the Risk Management Complaints Division. Kind Regards,
Risk Management Complaints Division
Risk Management Complaints Division