R200,000 later, family still paying off loan
IMAGINE paying more than R200,000 for a loan of R16,000 and being told you still owe money? It's crazy, but true.
NOT OWNERS: A family has been without a title deed for over 25 years A Soweto family regrets ever applying for a bond to build two rooms and a garage from the erstwhile People's Bank, now taken over by Nedbank.
Nompumelelo Mallie of Dube Village said her late mother, Nomvuso, took a loan from People's Bank in 1985 to build two rooms and a garage to accommodate a family of nine.
She said after building the rooms her mother received a "happy letter" from the bank to sign and soon thereafter commenced repaying the loan.
The installment was R200, which was payable over a period of 20 years, Mallie said.
Her mother repaid the loan until her death in 1991, she said. At the time of her death her mother had paid more than R14000, Mallie said.
As the eldest child in the family she continued with the repayments with the blessings of the bank, Mallie said.
Mallie claims she paid R700 a month until 2005, when the bank threatened to sell the house at auction because they had accumulated arrears on the account.
"We paid the R45000 the bank demanded to stop the auction and continued to pay our regular installment," Mallie said.
She said she continued paying though the bank had neglected to action the life insurance cover her mother had used as collateral.
"It was only in 2009 that Nedbank realised their error and paid R63000 into the bond account leaving a balance of R3000, (which) I agreed to pay," Mallie said.
Mallie said she was now battling to get the title deed from the bank attorneys, who were demanding more money from her.
"Now their attorneys are giving me hell! They say we won't get our title deed until we pay R1400, which they claim we owe the bank," she said, adding that the bank knew nothing about the shortfall the attorneys were demanding.
She said it was good of banks to help the destitute, but it was bad if they took advantage of the situation, even though they had been paid more than enough.
"It is only when you have been taken for a ride that you end up repaying more than R200000 for a loan of R16000," Mallie said.
She said if Nedbank were fair, it would refund a portion of the repayment it should not have received had they actioned her mothers life cover in 1991.
Mallie said she would be happy to get the title deed without paying any additional fee.
Nedbank is investigating the matter and has promised to comment after it have finalised the investigation.
LeeT
I really don't understand Nedbank and how they charge people. It is hillarius to even think of their interest charges on savings. For a month statement, they charge their client R10 per page. It is a robbery bank this one.Report Abuse
TDK
Was it a personal loan or homeloan. If it was a homeloan you're likely to more and more.Report Abuse
Africanist
Nedbank is investigating the matter****************************************************
has Charles Phahlane resigned from education and took a job at nedbank?its clear nedbank has been stealing from this family and many African families have been loosing money to evil banks and furniture stores for many years
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KeRataBasadi
I thought my family were the only ones to suffer this fate, fact is Perm or Peoples Bank, chowed some major moola by overcharging interest in the passed, dont know if they still do, one thing they did for me is teach me that cash is king.Report Abuse
Pabi
@all is it advisable to take a personal loan if one need to extend the house or should take a home loan what are the differnces in terms of interest.Report Abuse
tholi
Pabi@all is it advisable to take a personal loan if one need to extend the house or should take a home loan what are the differnces in terms of interest.
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This happened in 1985, and I doubt if the person was even given an option because even if it was over 240 months it would not amount to R200k I also think there was carelessness on their part 26 years later you are still paying for the house suppose it was 20 years for some sick reason, when you were paying over that what were you thinking? 6 years extra???
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