Standard Bank has initiated legal proceedings against former Kaizer Chiefs and Bafana Bafana defender, Molomowandau Mathoho, demanding the return of his VW Polo sedan due to outstanding payments on a vehicle finance agreement.
The matter, filed in the Johannesburg High Court last week, details a loan agreement dating back to February 6, 2019.
The court documents reveal that Mathoho secured a loan exceeding R250,000 to purchase a 2019 VW Polo. The total agreement, including interest and charges, amounted to R380,000, with monthly instalments exceeding R5,000. The final payment was scheduled for March 1, 2025.
Crucially, the agreement stipulated that ownership of the vehicle would only transfer to Mathoho upon full repayment of the loan. Standard Bank maintains its position as the legal owner of the vehicle until this condition is met.
The bank alleges that Mathoho has defaulted on his payment obligations, accumulating arrears.
"The defendant is in default of his obligations under the agreement and has been in default for a period of at least 20 business days since the date on which the default commenced. As of September 16, 2024, the arrears amount owing by the defendant to the plaintiff under the agreement was R49 626,” the court papers state.
Standard Bank claims that despite a formal notification on September 25th, 2024, informing Mathoho of the outstanding payments and urging him to rectify the breach of contract, no action was taken. The bank's letter demanded payment of the arrears and all overdue amounts.
"The defendant was required to remedy his breach of the agreement by making payment of the arrears and all overdue amounts under the agreement to the plaintiff (“arrears”),” the documents specify.
The bank's legal action stems from Mathoho's alleged failure to remedy the situation. The court papers clearly outline the bank's right to cancel the agreement and reclaim the outstanding balance should the default continue.
"Notwithstanding the default notice, the defendant has failed and/or refused and/or neglected to remedy his breach of the agreement. In consequence of the defendant’s failure to remedy his breach under the agreement, the plaintiff is entitled to cancel the agreement, which it hereby elects to do and to claim the total of all amounts owing by the defendant to the plaintiff in terms of the agreement,” the court filing states.
The bank's legal team argues that due to the lawful cancellation of the agreement, Mathoho is now in unlawful possession of the vehicle. The agreement, they contend, entitles Standard Bank to repossess the vehicle.
"As the plaintiff has lawfully cancelled the agreement, the defendant is now in unlawful possession of the goods, and in terms of the agreement the plaintiff is entitled to return of the goods upon cancellation of the agreement.”
Consequently, Standard Bank is seeking a court order confirming the cancellation of the agreement and directing Mathoho to return the 2019 VW Polo. The bank also seeks to retain all payments made by Mathoho to date.
Furthermore, the bank is requesting permission to claim damages, if any, by calculating the difference between the outstanding balance and the current market value of the vehicle, potentially factoring in a rebate on unearned finance charges.
The legal battle highlights the consequences of defaulting on financial agreements, even for high-profile individuals.
