RE: Master Service Agreements – Financial Institutions

During the course of yesterday, Monday, 21 June 2021 our NADA National Chairperson, Mark Dommisse, held telephone conversations with the top management at each of the major financial institutions (i.e. ABSA, MFC, Standard Bank and WesBank) regarding the content of their respective Master Service Agreements (MSA) which have recently been sent to all motor vehicle dealers for signature.

During these discussions NADA drew the financial institutions’ attention to the fact that motor vehicle dealers were not comfortable with certain key terms within the respective MSA’s and it has been agreed that NADA, as the dealer representative body, will help the dealers by appointing legal counsel to assist with the redrafting of the contentious clauses, the outcome of which should be acceptable to all parties concerned.

NADA will shortly appoint legal counsel who has the necessary knowledge, skills and experience in matters of this nature. Once Counsel has reviewed the respective MSA’s, NADA will set up the necessary industry forum with the financial institutions for NADA to discuss and amicably resolve the contentious issues in the shortest possible timeframe.

Given the aforementioned process and in the interest of arriving at MSA’s that are in the best interest of all parties concerned, NADA is suggesting that members defer the signing of the MSA’s until the process has been finalised.

NADA will advise members once we have signed off on the respective MSA’s.