Massive interest on loan devastates Soweto man

BAFFLED: Jabulani Vilakazi's bond of R35 000 grew to R135 000, because he made erratic repayments. Pic. Mbuzeni Zulu. © Sowetan.
BAFFLED: Jabulani Vilakazi's bond of R35 000 grew to R135 000, because he made erratic repayments. Pic. Mbuzeni Zulu. © Sowetan.

A Soweto man who took a loan for R35000 from African Bank in 1985 cannot believe that he now owes R135 000 though he made regular payments.

A Soweto man who took a loan for R35000 from African Bank in 1985 cannot believe that he now owes R135 000 though he made regular payments.

Jabulani Vilakazi from Diepkloof said his problem started in 1995 when the bank wanted him to take a second bond that he didn't need.

Vilakazi said: "I didn't accept the offer, but soon afterwards my bond shot up to R103 834."

He said when he asked about the increase he was told that he was in arrears amounting to R70000, which made a second loan necessary.

Vilakazi said: "I have paid from 1986, but the administrators, Company Unique Finance, don't have the records. Their records start from 1989."

Vilakazi, who has all the receipts for the payments, said his house was almost auctioned off, so he offered to pay the money.

"I have been repaying the money to six different account numbers. I cannot understand this irregularity."

He said the administrators are now demanding R139 000.

"I'm very stressed. This contributed to my wife's death a month ago. I want the administrators to write off this crazy debt they loaded on to my account."

Sunny Morgan of Company Unique Finance said the bond increased because Vilakazi's repayments were erratic. The amount received until last year was R5649 and the interest is R66 711. He also said the second bond was never repaid and it was merely registered to secure the now inflated balance of the arranged loan.

Morgan said the six account numbers that Vilakazi referred to is a duplication of an old account number.

"We assure Vilakazi that we will immediately correct the situation if he can prove that he made payments to the other five account numbers."

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