Refunding deposits: The consumer protection bill

I have recently being asked by a Product and Service Provider when should they refund a deposit paid on a cash purchase of a vehicle and if indeed they are obligated to adhere to such an request from a Consumer.

The Consumer Protection Bill sets out the position as follows:

RIGHT TO CANCEL

A consumer has the right to rescind a transaction or agreement or renewal of an agreement-

Within 10 business days of delivery, if:

1. the agreement et al. is a result of direct, distance or electronic marketing
2. any other circumstance where the goods were not able to be examined.

Within 5 business days of entering into that agreement, if:

1. the agreement et al. arises from direct marketing etc.
2. it concerns the purchase of time-share

An agreement can be cancelled without penalty by the consumer if that consumer gives 1 month notice to the supplier. 

Therefore it is of the utmost importance that Consumers as well as Service Renderers take note of these legalistic enforcements lest they land themselves in trouble.

This yet again emphasises the fact that all businesses should consider:

• training their personnel accordingly; 
• have all their business documents reviewed and brought in line with, among others, the Company’s Act, the National Credit Act and the Consumer Protection Bill.