Motor Finance Corporation
Penalty Clause For Early Termination

Dear Sir/Madam

I have had the misfortune of dealing with MFC on two separate occasions, both have left a very bitter taste in my mouth.

Two weeks ago I looked into terminating a contract for financing of my vehicle due to the fact that I was in the market for a new one. My bond originator came back to me and indicated that my settlement figure would be 311K rather than the indicated balance of my account which was 302K.

Over the past few weeks I have been bounced from department to department with no one accepting responsibility for helping me with this - eventually I was told I had to 'put it in writing' and send an email - just another way I see for you to avoid this confrontation...

Under the Consumer Protection Act a supplier is entitled to charge a 'reasonable penalty fee' for any discount, product, or service provided with the assumption that a contract would run to term. "reasonableness" is determined basis the agreement in question. A phone provider for example would be entitled to charge for the handset.

In your case you have clearly delivered no such discount, product, or service which entitles you to such restitution. I require you to remove this penalty immediately

Company: Motor Finance Corporation
Country: South Africa
City: National

  <     >