1 00:00:00,680 --> 00:00:04,440 Speaker 1: The Money Show Consumer Ninja, Wendy Nola, good to have 2 00:00:04,519 --> 00:00:07,039 Speaker 1: you back with us. Good evening in the National Consumer Tribunal. 3 00:00:07,040 --> 00:00:10,080 Speaker 1: And I remember when this happened. Confirming a settlement agreement 4 00:00:10,360 --> 00:00:13,360 Speaker 1: with the National Consumer Commission and Car Track, car Track 5 00:00:13,400 --> 00:00:16,160 Speaker 1: agreed to pay a final five million round. They had 6 00:00:16,160 --> 00:00:19,320 Speaker 1: to refund five point one million round to consumers that 7 00:00:19,320 --> 00:00:22,600 Speaker 1: had to cancel contracts with no cancelation fee, and they 8 00:00:22,600 --> 00:00:25,439 Speaker 1: had to change their terms and conditions. Now there was 9 00:00:25,480 --> 00:00:29,520 Speaker 1: so little about what actually happened, and now Wendy, you 10 00:00:29,640 --> 00:00:32,159 Speaker 1: had to go and get it. What's the backstory on 11 00:00:32,240 --> 00:00:32,879 Speaker 1: all of this. 12 00:00:34,960 --> 00:00:37,800 Speaker 2: Back Well, I only came across that story when I 13 00:00:37,840 --> 00:00:42,920 Speaker 2: got back from New Zealand, which was late Monday, because 14 00:00:42,960 --> 00:00:45,920 Speaker 2: I was down a rabbit hole and forcing myself to 15 00:00:45,960 --> 00:00:49,040 Speaker 2: be off the grid. So then I started looking and 16 00:00:49,080 --> 00:00:52,760 Speaker 2: I thought, you know, there was a lot in that, 17 00:00:52,960 --> 00:00:56,480 Speaker 2: but not a lot of details. What terms and conditions 18 00:00:56,480 --> 00:01:00,880 Speaker 2: were amended, what you know, how were they said to 19 00:01:00,920 --> 00:01:05,559 Speaker 2: be misleading people, et cetera. So the backstory is over 20 00:01:05,600 --> 00:01:07,720 Speaker 2: a period of time and this was put out there. 21 00:01:08,080 --> 00:01:11,440 Speaker 2: The National Consumer Commission received complaints from two hundred and 22 00:01:11,480 --> 00:01:14,760 Speaker 2: ten consumers accusing Car Track of abusing their rights and 23 00:01:15,319 --> 00:01:18,640 Speaker 2: in several ways. The Commission then investigated them and found 24 00:01:18,640 --> 00:01:23,120 Speaker 2: that some of the company's terms and conditions of their 25 00:01:23,160 --> 00:01:27,240 Speaker 2: sale agreement were inconsistent with the Consumer Protection Act. Cartrak 26 00:01:27,280 --> 00:01:29,680 Speaker 2: agreed to settle the bulk of the complaints one hundred 27 00:01:29,680 --> 00:01:31,960 Speaker 2: and sixty seven out of those two hundred and ten 28 00:01:32,680 --> 00:01:37,759 Speaker 2: without admission of liability to avoid lend the legal proceedings, apparently, 29 00:01:37,840 --> 00:01:40,959 Speaker 2: and they also agreed to enhance their terms and conditions. 30 00:01:41,200 --> 00:01:44,000 Speaker 2: I love that enhanced basically changed them. I mean them 31 00:01:44,360 --> 00:01:50,040 Speaker 2: to remove any potential vagueness. And that's pretty much as 32 00:01:50,120 --> 00:01:51,800 Speaker 2: much detail as we had. 33 00:01:52,960 --> 00:01:55,520 Speaker 1: So what parts of the contract were then found to 34 00:01:55,520 --> 00:01:56,280 Speaker 1: be problematic? 35 00:01:57,680 --> 00:02:02,560 Speaker 2: Okay? So section thirty eight that they promoted or sold 36 00:02:02,600 --> 00:02:06,560 Speaker 2: goods or services by promising consumers a rebate or other 37 00:02:06,600 --> 00:02:11,120 Speaker 2: benefit that was contingent upon the consumer helping the supplier 38 00:02:11,160 --> 00:02:14,240 Speaker 2: to sell to other people or to benefit upon an 39 00:02:14,280 --> 00:02:18,480 Speaker 2: event occurring after the consumer agrees to transact. And this 40 00:02:18,600 --> 00:02:21,679 Speaker 2: conduct amounted to unfair marketing tactics. It's very clear, and 41 00:02:21,720 --> 00:02:23,960 Speaker 2: the CPA you can't do that, and actually wasn't aware 42 00:02:24,000 --> 00:02:28,959 Speaker 2: that contract was doing that until this settlement. Also, section 43 00:02:29,080 --> 00:02:32,560 Speaker 2: forty of the CPA, Carttrack admitted to update the consumer's 44 00:02:32,560 --> 00:02:34,919 Speaker 2: bill to reflect the correct up to date status of 45 00:02:34,960 --> 00:02:38,360 Speaker 2: the consumer's account after they've scripted a payment, and they 46 00:02:38,400 --> 00:02:42,720 Speaker 2: said that was unconscionable conduct. Also section forty eight of 47 00:02:42,760 --> 00:02:46,200 Speaker 2: the CPA, by making the consumer enter into an agreement 48 00:02:46,320 --> 00:02:50,720 Speaker 2: on terms that were excessively one sided, involved misleading conduct 49 00:02:50,720 --> 00:02:53,480 Speaker 2: and required the consumer to waive their rights. Very interesting 50 00:02:53,560 --> 00:02:57,440 Speaker 2: one that section twenty nine. During the marketing of services, 51 00:02:57,480 --> 00:03:00,640 Speaker 2: they failed to disclose material terms and conditions of the 52 00:03:00,720 --> 00:03:04,800 Speaker 2: agreement another big one. And section fourteen finally, and that 53 00:03:04,880 --> 00:03:10,600 Speaker 2: they failed to or refuse to cancel a contract without 54 00:03:10,800 --> 00:03:14,760 Speaker 2: the charging of an excessive cancelation penalty, and thus they 55 00:03:14,760 --> 00:03:18,359 Speaker 2: were engaging in prohibited contact conduct rather which has the 56 00:03:18,400 --> 00:03:21,320 Speaker 2: effect of denying consumers the right to cancel a fixed 57 00:03:21,360 --> 00:03:25,720 Speaker 2: term contract before the end of the term. 58 00:03:25,919 --> 00:03:28,480 Speaker 1: You have it. Yeah, it's quite a long list. I mean, 59 00:03:28,840 --> 00:03:31,600 Speaker 1: part of the material terms that were not disclosed, So 60 00:03:31,600 --> 00:03:35,120 Speaker 1: people taking contracts out over the phone, what happened there? 61 00:03:36,400 --> 00:03:38,560 Speaker 2: Okay, So I had the same thought, what were they 62 00:03:38,600 --> 00:03:40,720 Speaker 2: not disclosure? Because that's one of my key areas of 63 00:03:40,720 --> 00:03:44,800 Speaker 2: interest is these telesales things that happen and they talk 64 00:03:44,920 --> 00:03:48,520 Speaker 2: up the good stuff and are quite vague on the 65 00:03:48,600 --> 00:03:51,960 Speaker 2: not so good stuff. So I asked the Consumer Tribunal 66 00:03:52,000 --> 00:03:55,760 Speaker 2: for more info and I was told I'd have to 67 00:03:55,800 --> 00:03:59,680 Speaker 2: fill out a Promotion of Access to Information Act for 68 00:04:00,080 --> 00:04:03,560 Speaker 2: it's basically yeah, it was actually it's basically access to 69 00:04:03,720 --> 00:04:08,880 Speaker 2: record And once I susplitted it, I got in the 70 00:04:08,960 --> 00:04:12,160 Speaker 2: full file, very very long file, ages to aid through it, 71 00:04:12,200 --> 00:04:14,440 Speaker 2: but I did get it. A huge portion of it 72 00:04:14,480 --> 00:04:18,159 Speaker 2: was devoted to the case of a Miss Redeemer and 73 00:04:18,279 --> 00:04:21,080 Speaker 2: car Track's rejection of her claim on its one hundred 74 00:04:21,080 --> 00:04:23,479 Speaker 2: and fifty thousand rand warranty in the case of non 75 00:04:23,600 --> 00:04:26,160 Speaker 2: recovery of a hijacked car. Now, the company has been 76 00:04:26,279 --> 00:04:29,320 Speaker 2: very big on marketing this. If we don't for some 77 00:04:29,360 --> 00:04:32,240 Speaker 2: reason we can't recover your car, will there's this an 78 00:04:32,360 --> 00:04:34,440 Speaker 2: up to one hundred and fifty thousand Rand that you 79 00:04:34,480 --> 00:04:36,799 Speaker 2: can get. And I get a lot of complaints from people. 80 00:04:36,839 --> 00:04:38,680 Speaker 2: This is the main car Track complaint. I get that 81 00:04:38,720 --> 00:04:43,240 Speaker 2: they that they were denied it because of terms and conditions. Right. So, 82 00:04:43,720 --> 00:04:48,240 Speaker 2: in May of twenty twenty to this Smiss Rendeemer contracted 83 00:04:48,240 --> 00:04:50,240 Speaker 2: with car track to put a tracking device in new 84 00:04:50,279 --> 00:04:53,840 Speaker 2: car and for tracking services. Exactly four months to the 85 00:04:53,920 --> 00:04:56,640 Speaker 2: day later, the vehicle, which your husband was driving at 86 00:04:56,640 --> 00:04:59,400 Speaker 2: the time, was hijacked. They took him to an unknown 87 00:04:59,400 --> 00:05:02,120 Speaker 2: location and then they drove away with the vehicle, which 88 00:05:02,240 --> 00:05:04,680 Speaker 2: wasn't recovered. So she lodged a claim with contract for 89 00:05:04,720 --> 00:05:08,240 Speaker 2: that one hundred and fifty thousand rand recovery warranty, and 90 00:05:08,520 --> 00:05:11,599 Speaker 2: it was rejected on the grounds that she had defaulted 91 00:05:11,640 --> 00:05:14,400 Speaker 2: on payments prior to the loss of the vehicle, but 92 00:05:14,520 --> 00:05:16,600 Speaker 2: she hadn't, and she provided all the proof, and then 93 00:05:16,720 --> 00:05:19,919 Speaker 2: Cortrak shifted the reason for rejecting the claim to the 94 00:05:19,960 --> 00:05:23,880 Speaker 2: fact that she didn't lodge her claim within thirty days 95 00:05:23,880 --> 00:05:26,520 Speaker 2: of the incident, as required by the terms of contract. 96 00:05:27,160 --> 00:05:31,040 Speaker 2: So and there was a whole long report by Commission 97 00:05:31,160 --> 00:05:35,720 Speaker 2: investigator stating that the conditions these conditions were not communicated 98 00:05:35,760 --> 00:05:38,599 Speaker 2: to her during that telesales call country to what the 99 00:05:38,640 --> 00:05:41,680 Speaker 2: CPA requires in such agreements, which is quite interesting because 100 00:05:41,720 --> 00:05:44,960 Speaker 2: that's what most telesales calls are about. They don't give 101 00:05:45,120 --> 00:05:47,160 Speaker 2: all the nitty gritty, right, They just said, well, it's 102 00:05:47,160 --> 00:05:51,640 Speaker 2: in the terms and conditions, and they quote Section forty 103 00:05:51,680 --> 00:05:54,680 Speaker 2: eight saying as supplier must not offer supply or into 104 00:05:54,960 --> 00:05:57,880 Speaker 2: an agreement to supply goods on terms that are unfair, 105 00:05:57,960 --> 00:06:01,360 Speaker 2: unreasonable or unjust. And I won't go to detail because 106 00:06:01,360 --> 00:06:03,920 Speaker 2: we haven't got time, but basically saying it wasn't fair 107 00:06:04,000 --> 00:06:06,560 Speaker 2: to say that you had just split the claim within 108 00:06:06,640 --> 00:06:10,680 Speaker 2: thirty days because basically cart Track was the one who 109 00:06:10,720 --> 00:06:13,479 Speaker 2: was in control of you know, it wasn't the best 110 00:06:13,680 --> 00:06:16,599 Speaker 2: the decision to know when whether there was a realistic 111 00:06:16,640 --> 00:06:20,239 Speaker 2: prospective recovery or not, and when they decided it wasn't, 112 00:06:20,279 --> 00:06:22,760 Speaker 2: then they should inform the consumer and that's when they 113 00:06:22,760 --> 00:06:27,279 Speaker 2: should submit the claim. Anyway, But it went. 114 00:06:28,400 --> 00:06:31,360 Speaker 1: Yeah, so when we've got we've got ten seconds left. 115 00:06:31,360 --> 00:06:35,200 Speaker 1: But how many how many car track warranty claims are 116 00:06:35,200 --> 00:06:36,440 Speaker 1: actually paid out in the end? 117 00:06:37,200 --> 00:06:39,240 Speaker 2: Okay, so this is a question I've been asking card 118 00:06:39,279 --> 00:06:43,080 Speaker 2: Track for a while and they've not said told me. 119 00:06:44,320 --> 00:06:49,719 Speaker 2: As the NCC invests, the NCC investigator obviously was told, 120 00:06:49,720 --> 00:06:51,720 Speaker 2: but does not reveal it. In his report. He says 121 00:06:51,760 --> 00:06:54,920 Speaker 2: this car Track had indeed papers said warranty to some 122 00:06:54,960 --> 00:06:57,599 Speaker 2: of its clients who lost their vehicles that were fitted 123 00:06:57,600 --> 00:07:00,480 Speaker 2: by the tracking device. Our requested the stats regarding to 124 00:07:00,560 --> 00:07:02,880 Speaker 2: the number of cars stolen during twenty twenty one and 125 00:07:02,920 --> 00:07:06,039 Speaker 2: twenty twenty two, and how many of those one hundred 126 00:07:06,080 --> 00:07:09,000 Speaker 2: and fifty thousand Rand parts were made, and then obviously 127 00:07:09,080 --> 00:07:11,840 Speaker 2: got the figure and concluded that it's always in the 128 00:07:11,880 --> 00:07:14,400 Speaker 2: best interest for car Track to find fault in their 129 00:07:14,400 --> 00:07:17,160 Speaker 2: clients in order not to pay the warranty. So I'm 130 00:07:17,200 --> 00:07:20,560 Speaker 2: particularly delighted that there's finally been some regulatory oversight on 131 00:07:20,640 --> 00:07:23,520 Speaker 2: car tracks warranty, given how much they punted and their warranty, 132 00:07:23,520 --> 00:07:25,640 Speaker 2: and given how many people come to me and say 133 00:07:25,640 --> 00:07:27,840 Speaker 2: they didn't get it. So that's the good news out 134 00:07:27,880 --> 00:07:30,920 Speaker 2: of that, and hopefully their terms and conditions well, they 135 00:07:30,960 --> 00:07:32,960 Speaker 2: have to improve as a result of this settlement. 136 00:07:33,160 --> 00:07:36,160 Speaker 1: Wendy Nola really appreciate that you consume a ninja. Thank you.