WesBank, Toyota charged for car loan collusion
An investigation by the Competition Commission has implicated WesBank and Toyota Financial Services South Africa Limited in a vehicle finance collusion scheme.
It has recommended that the Competition Tribunal fine the companies 10% of their total turnover.
The commission found that the two companies entered into an agreement to divide the markets by allocating customers or suppliers for the provision of vehicle finance.
It found FirstRand Bank, through its WesBank division and Toyota Financial Services, are involved in the provision of vehicle finance services.
Competition Commission spokesperson Siyabulela Makunga says the two companies concluded a shareholder agreement which contained clauses preventing them from competing.
“FirstRand, TSA Investment Holdings Limited and Toyota Motor Finance (UK) PLC have 33.3% share each in TSA. They concluded shareholder agreement which include clauses that prohibit WesBank from offering vehicle finance to customers seeking to purchase vehicles at authorised Toyota dealerships.
“Further, the agreement identifies the vehicle that WesBank is prohibited from financing, and these are the ‘new’ Toyota, Lexus and Hino vehicles and any ‘used’ vehicles sold through any authorised Toyota dealership, except McCarthy Group.”
He says the deprives consumers of the benefits which arise from competition.
“Such agreements are inherently inimical to competition and the commission has asked the tribunal to fine the companies 10% of their turnover.”
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