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The Motor Industry Ombudsman Of South Africa – In-Depth Q&A
The Motor Industry Ombudsman Of South Africa – In-Depth Q&A-September 2024
2023-12-14 EST 02:30:45

With around 500 new cases to study every month, the Motor Industry Ombudsman of South Africa has its work cut out. But how does it work, and who is the man behind it?

January 17 2015 was a a big day for the Motor Industry Ombudsman ofSouth Africa (MIOSA).That's the day it was accredited as a dispute resolution agency andbecame a custodian of the SA Automotive Code of Conduct (ACT) which ispart of the Consumer Protection Act.

In short, if a consumer feels done down by a motor manufacturer, or adealership which sold them a car or serviced it, MIOSA is thegovernment sanctioned body they complain to.And currently you can expect to wait six to eight weeks for the officeto make a finding.

Last year 60% of cases went the way of the industry, and 40% in favour ofthe consumer.And given that MIOSA is funded not by government, but by the motorindustry, inevitably some car owners on the wrong side of that 40%have accused MIOSA of being "in the pocket of the motor industry".

So I'll kick off my Q&A with Motor Industry Ombud Johan van Vreden there.

Q: What do you say to the frequent allegation that your office "is inthe pocket of the motor industry"?

JvV: The MIOSA is not a consumer council that automatically sides withthe consumer. In essence it represents both industry and the consumer.It acts as a referee between the industry and the consumer and amongindustry participants. It utilises good engineering practice, goodcustomer care practice, good legal practice, and fairness as a basis in its deliberations.

Add to this the fact that the MIOSA is an government accreditedinstitution, (so) we are protected by law to enable us to carry out ourfunction without fear or favour.

Q: Why are the manufacturers/dealers not named in the case studiespublished in your annual reports?

JvV: Unless a service provider is non-compliant with the ConsumerProtection Act No 68 of 2008 (Act) or the South African AutomotiveIndustry Code of Conduct, we will not name anymanufacturers/dealers/service providers in our case studies.

Q:What percentage of "operators" – importers, distributors,manufacturers, retailers, franchisors, franchisees; suppliers etc –are now signed up with MIOSA?

JvV: The MIOSA has 22 000 registered companies of which 6 000 haveaccepted the Code and the MIOSA's legal standing. As you willunderstand, total compliance will not happen overnight. However, wenow have inspectors in the field and are advertising and attending road shows to speed up the process.The MIOSA is currently underway with legal proceedings against theother 16000 companies and will also be conducting a "name and shame"campaign.

Q:Your recently released 2015 annual report reveals that engine-relatedcomplaints on used cars take up most of your complaints handlingteam's time. In my experience, many used car dealerships conductbusiness as if the CPA does not exist. Do you agree?

JvV: No, we don't agree.The MIOSA has found that at least 90% ofservice providers are adhering to the ACT. There are however a few chance takers.

Q:Most consumers who have a car, new or used, malfunction on themwithin the first few months, want a refund or at least a replacement.In what percentage of cases, in your experience, is either justifiedin terms of MIOSA's interpretation of the CPA, rather than a repair?

JvV: It depends, if a vehicle can be repaired we don't give refund orreplacement as this may result in usage costs to the consumer.Interms of a new vehicle the vehicle must be repaired back to manufacturer standards.In terms of a used vehicle the vehicle must be repaired back to goodworking order.

Q:Under what sort of circumstances would your office support a take-back(at no cost to the consumer, except for usage) of a problematic vehicle?

JvV: Each case is unique in its own merit. I cannot comment on this asthere are too many possibilities and too many factors which arecalculated when making a ruling.

Q:What advice to you have for owners of cars which develop mechanicalproblems very shortly after purchase?

JvV: Immediately take the vehicle back to the selling dealer. Do nottake it to another service provider to repair.

Q: What's the pettiest reason a car owner has advanced to your officeas justification for a new car/refund?

JvV: The navigation system was not picking up some of the roads.

Q: What's the most serious case – in terms of consumer injustice – thatyour office has handled in the past year?

JvV: This one is a difficult one. Every single case that is reported tomy office can result in a consumer injustice being perpetrated by aservice provider. As such each case is dealt on its own merit and withthe same level of seriousness.

Q:How many new cases are opened in an average month?

JvV: The MIOSA averages about 500 new cases per month.

Q:What five things do you wish consumers would do before they buy a car?

JvV:

Do a needs analysis – do you need the vehicle for a specific reasonor do you want the vehicle because someone else was driving it?Thoroughly inspect the vehicle, in and out, ie. check things likeinformation plate, compare it with the disc, etc.Check that the vehicle's service history is up to date and that theservice book is in the vehicle. Make sure that there is a spare keyfor the vehicle.Thoroughly read and understand the terms and conditions of the contract.Insist on copies of the Offer To Purchase (OTP)document and the contract.

Q:To what extent has the signing of the Code changed theoperation/standing of your office?

JvV: The MIOSA has been able to upgrade all of our systems toaccommodate the high volume of incoming enquiries and complaints.TheMIOSA staff compliment has tripled since accreditation.This wasnecessary to handle the influx of enquiries and complaints which thisoffice receives on a daily basis. As far as "standing" is concerned, Ithink that there has been a far greater awareness and a willingness toco-operate to avoid full-on legal action.

Q:What car do you drive? And what car would you like to drive if moneywas no object?

JvV: I drive a 2003 VOLVO XC90 T6 SE AWD. If money was no object, Iwould love to own a red 458 Ferrari Spiderand a 1299 Ducatimotorcycle (also red).

How should consumers get in touch with the MIOSA?

To contact the Motor Industry Ombudsman of SA, go to www.miosa.co.za. The “submit a comment” link takes you to the prescribed form.

Any views or opinions expressed in this article are solely those of the author and do not represent those of Cars.co.za or its editorial content team.

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