The Consumer Council of Fiji is warning second-hand car dealers to refrain from enticing consumers with false promises of securing loans with financiers and using this assurance to extort upfront payments.
They say dealers are providing this assurance to consumers without any credit check or consultation with financiers.
This comes as the Consumer Council has discovered cases where a prominent second-hand vehicle dealer in Suva is taking deposits for vehicles by assuring consumers they will arrange financing for the vehicles.
They say this assurance is then used to convince consumers to make deposits for vehicles, without the dealer consulting with any of the financiers or checking the financial eligibility of the consumers.
CEO, Seema Shandil says this move by the second-hand car dealer is unethical and against the principles of good business practices.
She says one of their major concerns regarding this particular dealer is that he deducts a staggering $1,000 from the deposit, should the loan not be approved.
The Council is urging consumers to refrain from committing their finances based on unsubstantiated promises such as securing loans from other financiers.
