ABDA CREDIT LIFE INSURANCE PAYMENTS REVERSED TO CREATE AN EVEN BIGGER DEBIT ON ACCOUNT.

A WARNING TO THE PUBLIC :

PLEASE check your ABSA credit card statements CAREFULLY.

Most of us have CREDIT LIFE INSURANCE, which is added to the monthly debit entries on our CREDIT CARDS which INCREASES the account balance and at some stage ALSO attracts INTEREST.

Needless to say, due to the COVID19 LOCKDOWN, most South Africans lost MEGA income.

To my knowledge, NO person, currently alive in South Africa, has EVER dealt with such a devastating event and had to rely on those “in the know” to lead us. After numerous queries from the public, on how to deal with this event, we (the public) were advised to apply for COVID 19 RELIEF. Most of us, not wanting to end up with NEGATIVE CREDIT RECORDS, app**** for the COVID 19 RELIEF from our creditors.

Eventually, after some time, the larger insurance companies advised the public to claim against their CREDIT LIFE INSURANCES or those WITHOUT credit life insurance could apply for COVID 19 RELIEF.

In APRIL 2020, I app**** for the COVID 19 RELIEF on my ABSA credit card, as I was UNAWARE that I should rather claim against my CREDIT LIFE INSURANCE.

ABSA granted the COVID 19 RELIEF “payments” as follows : 1. adding this amount as a DEBIT transaction to my account balance 2. added INTEREST @ 15% p.a. to the FULL outstanding balance. 3. then credited (reversed) the COVID 19 RELIEF amount - “camouflaging” it as a payment.

For 3 (THREE) MONTHS, (APRIL, MAY & JUNE 2020) these debit transactions totalling R2,657.16, were ADDED to my account PLUS INTEREST. This ALSO caused the CREDIT LIFE INSURANCE PREMIUM to INCREASE due to the HIGHER account balance.

When I became aware of the FACT that I should claim against the CREDIT LIFE INSURANCE instead, and our financial situation went from VERY BAD to DIRE, I submitted further claims for JULY to OCTOBER 2020. These payments were granted and “correctly” made by ABSA.

Only in NOVEMBER 2020, did I realise what the difference is between a COVID 19 RELIEF payment and a CREDIT LIFE INSURANCE pay-out. I queried it with ABSA NUMEROUS times. Needless to say, I and am STILL waiting for ABSA to rectify this matter.