Taxi Finance Overcharge Case

On 10 December 2018, the client purchased a taxi for R451,722.90, financed through SA Taxi. She paid a deposit of R90,000, and after including accessories and associated charges, the financed amount came to R372,665.65.

The contract reflected a variable interest rate of 26.5%, calculated as prime + 16.5%. This rate was significantly higher than typical vehicle finance rates and was more than double what is generally charged for standard vehicle financing.

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Alleged Overcharge

By 1 January 2026, the client had allegedly been overcharged by R276,165.22.

This figure is substantial and raises serious concerns regarding the calculation of interest, charges applied to the account, and the overall cost of credit over the life of the agreement.

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Contractual Payment Terms vs Actual Payments

According to the agreement, the total amount payable over a period of 78 months was R1,043,991.09.

However, records indicate that by 1 January 2026, the client had already paid R1,372,080.09.

This means:

• She paid R328,089.00 more than the total contractual repayment amount.
• Despite this, she still allegedly owes R129,298.89 on the vehicle.

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Financial Impact and Concerns

The situation presents a troubling financial picture. Even after paying significantly more than the agreed total repayment amount, the account allegedly still reflects an outstanding balance. This raises critical questions regarding:

• The accuracy of interest calculations
• The application of additional charges and fees
• Possible compounding or penalty interest
• Compliance with the National Credit Act
• Transparency and disclosure obligations by the lender

If the figures presented are correct, the client has effectively paid far beyond the agreed contractual amount, yet remains in debt. Such a scenario would warrant a detailed forensic financial review of the loan account, including a full reconciliation of payments, interest, fees, and balance calculations.