A Gauteng resident has initiated legal proceedings against Absa Bank, accusing the financial institution of unlawfully repossessing his vehicle despite having settled his arrears.

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Anele Zagagana, from Springs in Ekurhuleni, claims that Absa has refused to release his vehicle even after he cleared the outstanding balance. His legal team is currently finalizing the lawsuit to compel the bank to return his car.

Dispute Over Payment Agreement and Repossession

In July 2023, Zagagana experienced financial difficulties and reached an agreement with Absa to pay a reduced amount until his situation improved.

“For several months, I continued making payments, albeit at a reduced rate. Instead of the required R6,000, I paid around R4,000 monthly until December when my finances stabilized, and I resumed full payments,” said Zagagana.

However, earlier this month, two men arrived at his residence and repossessed the vehicle. He was informed that he needed to pay R27,000 in arrears to reclaim it. To his surprise, he later discovered that he was required to pay an additional R13,000, bringing the total to R40,000.

Legal Challenge Against Extra Charges

Zagagana questioned the legitimacy of these additional fees but was allegedly met with vague responses. Unwilling to pay an unexplained amount, he decided to pursue legal action.

Determined to recover his vehicle, the 33-year-old truck driver is prepared to fight the case in court. His legal representative, Mabu Marweshe, confirmed that litigation is underway, and they have evidence proving that his arrears were fully settled.

According to Marweshe, their case also raises concerns about privacy violations, as third parties allegedly accessed Zagagana’s confidential financial details. “Our client was unlawfully threatened with arrest and pressured into making payments beyond what was initially agreed upon,” the lawyer stated.

Absa Denies Wrongdoing

In response, Charl Potgieter, Managing Executive for Absa Vehicle and Asset Finance, denied any misconduct on the bank’s part. He asserted that all processes were followed in compliance with legal and policy requirements, including the use of field agents for vehicle recoveries—a standard practice in the industry.

“While we cannot disclose specific details of our customer’s case, we remain in communication with him and are committed to addressing his concerns. At Absa, we take a customer-focused approach and provide various support mechanisms to assist clients facing financial hardships,” said Potgieter.

Broader Implications for Vehicle Owners

Zagagana’s case highlights broader concerns regarding vehicle repossession practices in South Africa. Many consumers have faced similar disputes, raising questions about transparency in loan agreements and additional fees imposed by financial institutions. Legal experts suggest that such cases could set precedents in how banks handle vehicle financing disputes and customer agreements.

Consumer advocacy groups have called for stricter regulations to ensure fair treatment of borrowers and better oversight of repossession practices. As legal proceedings continue, the outcome of this case may influence future policies regarding vehicle financing and repossession procedures.

With legal proceedings underway, the case is expected to test the fairness of vehicle repossession policies and the transparency of additional charges levied by financial institutions. Zagagana remains resolute in his quest for justice, determined to reclaim his vehicle and challenge what he deems an unfair demand by the bank.