Case Overview
In June 2023, WesBank approved financing for a customer (identified as Mr. Rocha) to purchase a Ford Ranger. Rocha made three payments totaling roughly R81,000 before disappearing with the vehicle.
Rather than pursuing Rocha, WesBank sued the Gqeberha-based family dealership Your Car Guy (owned by Ray Neethling) and two sureties for R1.36 million—the full amount it paid the dealership for the vehicle—without returning the car.
Key Findings & Judgment
- Legal Causation: Judge Murray Lowe in the Eastern Cape High Court dismissed WesBank’s claim. While the court acknowledged that the dealership had technical breaches of its agreement (such as the car not initially being in its dealer stock), it ruled that WesBank’s financial loss was directly caused by Rocha’s fraudulent scheme, not the dealer’s contractual missteps.
- Credit Approval Responsibility: The court noted that WesBank was the party responsible for vetting Rocha’s creditworthiness and approving the loan. Rocha had provided a fake home address and false employer details that the bank failed to properly verify before approving final credit.
- Flawed Claim Calculation & Evidence:
- WesBank failed to deduct the R81,000 already paid by Rocha from its R1.36 million claim.
- The bank did not properly adjust for interest components.
- WesBank failed to include or submit the specific individual sale agreement in its court documents or trial bundle.
Outcome
The Eastern Cape High Court dismissed all of WesBank’s claims and ordered the bank to pay Your Car Guy’s legal costs.
