Can't afford your car payment anymore? Here's what you need to know...
83 days ago
For many South Africans, the impact of the coronavirus pandemic has meant a drastic reduction in income and, in some cases, a total loss of income.
Inevitably the question arises, what can I now afford?
For some, expenses that were once manageable, such as a car payment, are now unaffordable.
So what are your rights and responsibilities as a consumer?
CapeTalks's Pippa Hudson spoke to Sarah Nicholson, commercial manager at JustMoney to find out what the law says.
Nicholson says it's very important consumers know what their rights are:
Let's say you miss a payment - the lender needs to notify you of this. After that, they're going to provide you with a certain number of days to catch up with your payment.Sarah Nicholson, Commercial Manager - JustMoney
If you fail to pay it, then the lender is only entitled to cancel its financial arrangement with you.Sarah Nicholson, Commercial Manager - JustMoney
But can the lender actually come and take your car? Nicholson says only once certain processes have taken place:
It's only through a warrant of execution that a sheriff can repossess your car.Sarah Nicholson, Commercial Manager - JustMoney
Nicholson adds that it is important that you make sure your address is correct with the lender in the event that a summons is issued to you.
If it's sent to the wrong address and you don't get the summons that summons includes a date and the court that you would need to appear in where you would defend it.Sarah Nicholson, Commercial Manager - JustMoney
If you want to defend it and you don't go to the court on that specified date, that will be an admission of guilt.Sarah Nicholson, Commercial Manager - JustMoney
Find out more about your rights and responsibilities when it comes to your car payment:
This article first appeared on CapeTalk : Can't afford your car payment anymore? Here's what you need to know...