The banks are robbing us - why?
I had two loans with Capitec Bank Holdings [JSE:CPI] and they garnished me. I paid up two and they are still deducting another two on my salary advice and the balances therefore are too much.
When I enquire at Capitec I don't get the right person to help me. Is there any specific person who can help me find out what is going on?
Charl Nel, head: strategic communications of marketing and corporate affairs at Capitec responds:
This matter was previously referred to our complaint management department. The client also logged a complaint with the Daily Sun newspaper previously.
The client had four loans with Capitec Bank (because of client confidentiality, I unfortunately cannot attach the loan agreements as proof).
We were correct in debiting for four loans. When the client contacted us with regard to repayment of these outstanding loans, our centralised collection services requested that some of the legal fees be reduced by our collections agent, and this was done.
Please see our response below to the Daily Sun in connection with the Fin24 user about the same issue almost a year ago and which was discussed in a column in the newspaper.
I believe we have gone the extra mile to accommodate the client with his outstanding debt. However, the client is and stays liable for the debt outstanding until fully settled.
An email message from Nel to the Daily Sun dated March 20 2012 reads:
The client alleges that he took out loans to the value of R3 000.00 and that he has already paid back R7 400.00 to the collecting agent.
However, our information indicates that the client took out loans to the value of R5 808.66 and that he was handed over for an outstanding R6 538.28.
We requested that the collections agent reduce the monthly instalment and an agreement was reached in which the instalment was reduced from R1 000.00 to R350.00. The collections agent also gave 50% discount on the legal costs.
We have contacted the client and explained the above to him. We have also forwarded him the documents in which the agent confirmed the discount on legal fees and informed his employer of the reduced monthly deductions.
However, the client is and stays liable for the debt outstanding until fully settled.
I trust that the above is providing you with the background on this issue.
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