Wesbank penalty for early settlement

In August 2016 I bought a VW Amarok from VW Bruma and dealt with their F&I Shavani Govender. She recommend financing the vehicle through VW Financials Services which is a division of Wesbank.

I dealt with Wesbank before when I bought a motorbike in 2002 and know they like to sneak in a early settlement penalty. In this case I crossed out the clause, when I settled the bike Wesbank tried to charge the early settlement but I had the modified contract and they were forced to back off.

Therefore I asked the F&I about early settlement. Shavani told me there would only be early settlement if I settled the contract within 90 of inception. She also went as far as to tell me that early settlement penalty are ******* and thus I would not be charged early settlement.

Fast forward 18 months to today, I phone to get settlement as I have sold the VW Amarok. My statement says capital outstanding balance is R380 000 but I get quoted R392 000 settlement. I query the agent Daniel Wessie how can this be. I am told that there is a R10 000 penalty. I explain my F&I advice and that there can be no penalty.

Daniel then tells me that because the car is more than R250 000 in terms of the National Credit Act this is a large contract and Wesbank can charge a penalty. My first question is what new car can you buy for less than R250 000, very little, so I guess most of the contract they apply this rule. Daniel then tells me that I need to have given 90 days notice in order to not to be charged the penalty. Is 90 day wait reasonable to trade in a car. No a dealer is not going to wait 90 days and then be able to offer you another car. So Wesbank has a rule that they know is irrational and can't be practically app****.

I am lodging a complaint with the National Consumer Commission. The dealer that bought my car has sold it and needs the papers to complete the deal with the new owners finance house. Therefore I am forced to pay the penalty and take my chances getting it back.

I have financed many cars, normally I would use Stannic /Standard Bank Asset finance and never had this issue of a penalty. This is the second time I used Wesbank and the last.

Trust me, read the small print and make modifications, it is your right. Don't trust the F&I, they just want the deal and will say anything. I would not finance through Wesbank (VW Financials Services).

Wesbank I see you have been charging me 12.5% interest and on my calculation I have paid R85 000 in interest and R93 000 in capital. You had zero risk, this must be great business, if you can get it. Never again!

The joke is on Wesbank and VW. Not only would I never be using your services again in my personal capacity but neither will my business. I am a director of a medium size company with a fleet of 65 vehicles. I was looking at replacing the fleet through Wesbank either as an FML or HP. I guess that is not happening. Sorry Karen Hall our personal banker and Susan Van Dyk from Wesbank fleet, I just can't support a company that punishes a person for settling their debts early.

PS. Daniel Wessie I am still waiting for the early settlement letter where you show the R10 000 penalty and how it is calculated. I guess Wesbank doesn't want the consumer to be able to challenge the practice and calculation of early settlement.