Bank admits to own error, refunds client

2010-07-17 10:33

African Bank has cancelled the debt of a

client who was incorrectly billed and paid him a refund.

Last month, Lindelani ­Ragimana of Free State, acknowledged receipt

of R683 – in instalment plus ­the interest that accrued as a result of the

administrative error.

Ragimana expressed his gratitude to Hotline on hearing the good

news.

“It’s a small figure but it could have increased.

“The bank continued to charge interest on an account that should

have been closed a long time ago. I am glad this is all over,” said

­Ragimana.

In March 2007, Ragimana took out a loan of R10 000 and agreed to

make monthly repayments of R575 over 35 months.

The last payment date was January this year but African Bank

continued to make the deduction beyond this period.

This angered Ragimana, but he failed to fight the battle on his

own.

African Bank acknowledged the error, but seemed reluctant to pay

out a refund until Hotline intervened.

After a day’s investigation, consumer advocate at African Bank

Marilyn Budow concluded that Ragimana had been overcharged.

“We have paid out the refund and closed the account,” said

Budow.

She said Ragimana had defaulted on her repayments and the

administrative ­error resulted in one month of additional deductions.


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