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Picture taken from www.responsiblelending.org

However, those whose salaries have been garnisheed anticipate to pay the debt off one day.

They expect to get a reduced balance statement on request, not to be over-charged in legal fees or be issued a revolving garnishee order.

It's been 11 years since Cynthia Mntungwa started paying off a loan she took out from Saambou - before it went bankrupt and was taken over by African Bank.

She suspects that her garnishee order has been revived multiple times and wants this to cease.

Mntungwa said she was not notified about the order nor did she consent to have the garnishee order attached to her salary.

"Not that I would have disputed the debt, but it's only fair to know who else has a right to a portion of your salary."

She took out a loan for R15,000 and repaid R30,000 as of 2001, she said.

Mntungwa recently asked for a balance statement and received the shock of her life when the attorneys who were collecting debts on behalf of African Bank told her she still had an outstanding balance of R56,000.

"This is worse than a revolving credit."

African Bank said Mntungwa was at fault for having paid five times her initial loan amount.

A manager at the bank's consumer department, Sonette Botha, said Mntungwa had not honoured her original debt repayment agreement.

"We are sympathetic to the situation that Mntungwa finds herself in," Botha said.

African Bank only offered to reduce her debt by R5,000 after Consumer Line's intervention.

Comments

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Sat May 25 17:35:11 SAST 2013 ::

Apr 18, 2012

kudi

yooooooooooooooooooh
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Apr 18, 2012

Iwe

If I am allowed to make a Law, I will declared anyone who works and earn a salary should take only one loan in their life. It should be a compalsary ie Home Loan and pay it off. No other loans should be granted and that home Loan should be given according to your salary scale. Not some one who earn 6000 per month mara have a bond house that cost 500 000 00, the rest if you cant afford you should not be granted.
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Apr 18, 2012

Pabi

disaster tjoooooooo! i feel sorry for this woman, help me God.
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Apr 18, 2012

zaco'z

hmm
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May 9, 2012

Britata

@ iwe u are so damn right....i was given a loan even though the company knew that im a contractor and then lost my job and spent two years unable to pay that loan coz i was pudhing Piece jobs,now im paying it Tripple and if i dont i will get black listed
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