COSATU is to take up the issue of a car scam because this scam mainly affects working people, many of whom are COSATU members.
Banks and the car retail companies have been promoting this pyramid scheme under the guise of a legitimate car sale, but it was always just a matter of time before this bubble would burst. Now it’s the consumers who have to bear the brunt of the banks circumventing the National Credit Act.
COSATU will enter into negotiations with the banks to extend periods of repayment so that the amounts remain at the affordable levels of R699 that is actually payable. This so that people can retain the substantial investments they have already made into these cars.
COSATU is calling on government to take action against banks violating the National Credit Act.
COSATU will further be supporting the class action suit against the finance institutions and Car retail companies to ensure these kinds of practices are not repeated in future.
Source : Congress of South African Trade Unions