Bernadette Wicks
Senior court reporter
3 minute read
28 Dec 2020
5:15 am

Bank refunds ‘quietly hiked interest’ overcharges

Bernadette Wicks

A clause in credit agreements entered into before the National Credit Act was promulgated had provided for subprime interest rates to be increased to prime in instances of defaults, the bank said.

Standard Bank. Picture: Moneyweb

Standard Bank has agreed to refund a Johannesburg woman who says the interest on her home loans was quietly hiked after she fell into arrears and that, unbeknown to her, she was incurring massive overcharges as a result. And the expert she roped in to help her says this is not an isolated case. But Standard Bank says it always ensures charges on loans are debited “in line with the agreements concluded with the customer”. The case in question – together with another, similar case in which the bank recently agreed to a refund – are simply “two examples out...