Cape Town – When the SA Reserve Bank announced on Sunday that African Bank [JSE:ABL] is placed under curatorship, it has left many of the bank’s clients with questions about how that would affect them.
Fin24 has obtained answers to frequently asked questions – especially about loans and credit cards - from the curator, Tom Winterboer of PwC.
Questions and answers:
Fin24 user Bonile writes: I have two loans and a credit card with African Bank. Will this mean we have to pay our debt in full or will the payments now be more each month than what I pay now?
The curator responds: It is business as usual. All clients must continue to honour their existing payment plan.
It is important that customers maintain a good standing with their loans in order to ensure that their bureau profiles remain positive and their ongoing good relationship with African Bank remains intact.
This will help them with new credit applications in the future.
Fin24 user Ashley writes: How will it affect my account with African Bank and will my installment still be deducted every month? Will interest be calculated to my account?
The curator responds: The curatorship does not affect any existing depositors’ accounts or loan agreements. The bank remains open and regular operations continue.
Fin24 user Paul writes: I only have a credit card from African Bank and want to settle the outstanding amount in full immediately. Where do I go now to do this?
The curator responds: If you are doing this simply because of the curatorship, it is unnecessary as the card will be fully operative.
If you want to cancel it, you can go into any African Bank branch to cancel the card or phone the call centre on 086111 10 11 to arrange this.
Fin24 user Julie writes: We are about to sign a loan agreement which African Bank had approved before it went under curatorship.
My concern is whether the loan is still approved and available under the present circumstances the bank finds itself in?
We are supposed to be signing the papers today, but due to this latest development we would like to know if they will still be able to accommodate us in this regard?
The curator responds: The bank remains open and regular operations continue. Customers can agree to the loan agreement or decide not take out the loan.
Fin24 user Percy writes: As a client that is currently servicing a debt at Abil, I was hoping to apply for a consolidation loan by the beginning of November 2014.
I was hoping to, in effect, be allowed to obtain some extra cash without my monthly repayments increasing.
What I specifically need to know is: How will this affect people in my situation?
The curator responds: It is business as usual and customers can apply for a consolidated loan.
Fin24 user Sibongile writes: What is going to happen with my loan? Am I still under obligation to pay my loan?
The curator responds: Existing loans remain legally binding. All clients with existing loans are required to repay their loans in accordance with their loan agreement.
Fin24 users Prudence and Jabu write: What is the impact of the curatorship on us as customers of African Bank?
The curator responds: It is business as usual. Sarb governor Gill Marcus has stressed that all customers are still legally bound to repay their debt to African Bank.
Fin24 users Doctor and Maggie write: What's going to happen to us who owe this company money? Where are we going to pay our debt? What will happen to people with outstanding loans they are busy paying off?
The curator responds: African Bank will interact with customers in exactly the same way it has always done and will make sure that it still collects debts and provides the service it always has.
Fin24 user Skholiwe writes: I don't understand how this may affect me as a client. Any clarity will be appreciated.
The curator responds: Customers with savings and investment deposits at the time of the establishment of the curatorship can rest assured that their deposits are guaranteed.
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* Are you an African Bank or Ellerines (Abil's loss-making furniture unit) customer? Tell us of your concerns regarding this latest development.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.