Standard Bank warns that such offers are not always legitimate and could be the work of debt brokers, who are also known as take-over agents or hula-hoopers.

One of the ways in which a debt broker "assists" debtors who have a motor vehicle on finance, is to offer to find a prospective buyer for the motor vehicle. However, in many instances, this merely involves a take-over of the installments in terms of the credit agreement by the new "buyer", without the consent of the financier.

This practice is illegal. It does not release the debtor from his obligations in terms of the credit agreement even though they are no longer in possession of the motor vehicle. It constitutes a breach of the credit agreement by the debtor and could result in criminal charges being laid against both the debtor and the new buyer.

Godfrey Dhlamini, Director, Stannic Retail Credit, says: "We are currently investigating at least two take-over syndicates that have been distributing flyers over the past few days. Although some flyers show different names, they look suspiciously alike. Some even seem to be advertising the exact same motor vehicles.

To justify the extremely low price, many of take-over syndicate operators claim that they are selling the motor vehicles on behalf of banks, and insurance fleet companies."

People are requested to be on the alert and not to fall victim to take-over scams. Elements that may assist in the identification of a take-over scam may include the motor vehicle being available for viewing by appointment only, as operators of take-over scams do not usually have fixed premises nor do they have the motor vehicle in their possession. As the operators of take-over scams usually operate countrywide and at different times, they usually provide only a cellphone number and seldom a street address.

The operators of the take-over scams sometimes ask the prospective buyer to pay a "deposit" into their bank account, possibly even prior to the motor vehicle being viewed by the prospective buyer. Once the deposit is made the operators of the take-over scams may commence discussions on finance and delivery arrangements. In some cases the motor vehicle is never delivered to the prospective purchaser, who then loses the deposit.

Anyone who has fallen victim to a debt broker should report the matter to the South African Police Service.

Issued by:
Standard Bank Group Communications