Relief as big commission is withdrawn

Fortunate Mayo breathed a sigh of relief when Consumer Line told her that she did not have to pay R9700 that BondExtreme Agency was demanding from her.

Fortunate Mayo breathed a sigh of relief when Consumer Line told her that she did not have to pay R9700 that BondExtreme Agency was demanding from her.

Mayo and her husband wanted a R787264 loan on their property from SA Home Loans, but when the institution was delaying facilitating the money, they decided to approach BondExtreme to speed up the process.

In the meantime, Nedbank decided to give them the loan, but SA Home Loans was not prepared to release them as clients, so they gave them the loan.

"We cancelled our dealings with BondXtreme, but they still wanted that big commission on a loan that was not concluded," Mayo said.

They only received a quotation for the home loan from Nedbank and signed a letter saying they accepted it.

A pre-agreement disclosure is a statement setting out the principal debt, the proposed distribution of the amount and is valid for five days.

It is not a contract, but the quotation gives a consumer an opportunity to consider the intended transaction and allows a consumer time to think and the possibility of seeking similar services elsewhere.

"I immediately notified BondXtreme and awaited their bill in respect of the administration costs they incurred, but they demanded R9700," said Mayo.

The National Credit Act states that the commission may be paid only if an agreement is concluded.

"But we had only received Nedbank's quotation for a home loan and the loan had not been approved," said Mayo.

J Malan from BondXtreme said they will make arrangements with Mayo to only pay their administration expenses to the amount of R970, plus Vat.

He said due to declining loans in the property market, their business now concentrated more on recovering their wasted cost from clients than on submitting new loans.

"The property market has a negative impact on our business and we are in the process of recovering all monies owed to us from the various clients that we assisted in obtaining bonds from financial institutions," said Malan.

He explained that BondExtreme was not a service provider but a facilitator that enabled clients who needed bonds to secure the largest bonds at the best interest rate.

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