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
Ragimana expressed his gratitude to Hotline on hearing the good
“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
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
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
She said Ragimana had defaulted on her repayments and the
administrative error resulted in one month of additional deductions.