SCA Ruling | Consumers may cancel credit for defective goods

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Published Dec 20, 2025

The Supreme Court of Appeal has ruled in favor of a consumer, Aletta Van Niekerk in a landmark case against FirstRand Bank. Van Niekerk had purchased a second-hand Ford Ranger vehicle on credit, only to discover serious latent defects, including a faulty gearbox and oil cooler, days after delivery. She sought to cancel the credit agreement and reclaim the money paid, relying on her common law rights and the Consumer Protection Act.

The bank refused, taking the matter to the High Court, which initially ruled against her. On appeal, the Supreme Court of Appeal overturned that decision, confirming her right to cancel the credit agreement and recover One-hundred-and-seventy thousand, twenty-three rand and twenty-three cents, plus interest and costs.

The ruling clarifies how the National Credit Act interacts with the Consumer Protection Act, particularly concerning defective goods purchased on credit. It also sets a precedent for consumers facing similar issues with banks or credit providers. Consumer Journalist Wendy Knowler joins us now, to discuss the ruling, its implications and what it means for everyday consumers.

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