Hi and thank you for the question
A bank can repossess a car in two ways. One is if you voluntarily surrender the vehicle in terms of the National Credit Act and the other is with a court order from the High Court. If the bank made you sign something it was most likely that you signed a voluntary surrender. In terms of the Act, the bank must sell the goods for the best price reasonably obtainable. Not sure what the value of the vehicle is, but usually they sell it for far less than what it is actually worth and for even further less than what you owe the bank. the result is that there is a shortfall and you still have to pay the bank for a car that you no longer have.
I would suggest that your debt counsellor pull in an attorney into this case to make sure if the summons process etc was correctly followed, and if the vehicle was repossessed lawfully. If not, they bank must return the vehicle to you.
You must find answers as to why the bank received less than what they should have i.t.o the debt review. Your debt counsellor must exhaust every avenue to pinpoint the cause of the under payments and establish an agreement with the bank i.t.o the arrears. If no middle ground can be reached I am afraid the bank will go ahead and sell the vehicle. Under normal circumstances they cannot repossess your vehicle when you are under debt review.
Your debt counsellor should attempt to speak to the most senior person possible at the bank to try and rectify the issue. It just does not make sense for them to bluntly go ahead even if you have offered to bring the arrears up to date.
You might also want to consider contacting the Credit Ombud. You can find them at http://www.creditombud.org.za/ They might be able to address any unlawful actions by the bank.
Hope you find a solution.