1 reviews | Active since Jun 2016
ABSA OVER CHARGING INTEREST WHILE UNDER DEBT REVIEW
I have requested several times for proof of how my interest on my Absa loan was worked out. I am under debt review since 2016 and as per the In duplum rule the interest and fees added to the account my not be more than the outstanding balance when I went under debt review. In other words once the account has doubled no more interest of fees may be added.
Absa keep on saying it is as per the court order and they have done a reversal of R2175.00. And after that my outstanding amount is R139 526.21 which means it grew with 170% and that is not even including the payments I have made. As per the court order stamped 29 August 2016 the outstanding amount was R51 837. Which means my account my not go more than R103 674. Until October I have paid R23 387.01 toward my Loan account. So my outstanding amount should not be more than R80 000.
I keep on asking for proof as to how they worked it out, but they refuse. You go under debt review to try and sort out your finances and to get out of debt, but then a bank like Absa do everything in their power to keep you in debt.
I insist on getting feedback and my account being restructure as per law and the In duplum rule.
Karien
Dear Karien
Thank you for bringing this unfortunate matter to my attention and please accept my sincere apology . I will review and provide you with my specific contact details as well as your unique complaint reference number, and an expected timeframe for further feedback/resolution via email or making contact with you telephonically.
Regards
Lebogang Mashiane
Specialist Case Manager
Customer Value Management
Dear Karien
Thank you for bringing this unfortunate matter to my attention and please accept my sincere apology . I will review and provide you with my specific contact details as well as your unique complaint reference number, and an expected timeframe for further feedback/resolution via email or making contact with you telephonically.
Regards
Lebogang Mashiane
Specialist Case Manager
Customer Value Management
I am well aware of the interest rate as per the court order as well as payments that has been made.
My question that I am asking, that Absa seem to just ignore is, what about the In Duplum Rule?
According to me the below is what it means and that if I understand it correctly, it means that Absa should have stopped adding interest and fees the moment the interest and fees where equal to the outstanding amount when I went onto debt review.
The in duplum rule is a common law rule that provides that arrears interest ceases to accrue once the sum of the unpaid (accrued) interest equals the amount of capital outstanding at the time (and not the amount of capital originally advanced). “In duplum” directly translates to “double the amount”.
Can you please confirm in writing if Absa has accumulated fees and interest not only by my court order but also by the in duplum rule? If Absa comp**** by the In Duplum rule I have been over charged with about R80 000+ in interest. And if I do not understand the In Duplum rule correctly please explain to me in writing what it means?
And please stop avoiding my actual question as I will not stop until you either restructure my account in terms of the In Duplum Rule, or in writing acknowledge that the In Duplum Rule is not valid or do not apply to my account, where I can then seek advise from the NCA.
Kind Regards
Karien Barnard
I am well aware of the interest rate as per the court order as well as payments that has been made.
My question that I am asking, that Absa seem to just ignore is, what about the In Duplum Rule?
According to me the below is what it means and that if I understand it correctly, it means that Absa should have stopped adding interest and fees the moment the interest and fees where equal to the outstanding amount when I went onto debt review.
The in duplum rule is a common law rule that provides that arrears interest ceases to accrue once the sum of the unpaid (accrued) interest equals the amount of capital outstanding at the time (and not the amount of capital originally advanced). “In duplum” directly translates to “double the amount”.
Can you please confirm in writing if Absa has accumulated fees and interest not only by my court order but also by the in duplum rule? If Absa comp**** by the In Duplum rule I have been over charged with about R80 000+ in interest. And if I do not understand the In Duplum rule correctly please explain to me in writing what it means?
And please stop avoiding my actual question as I will not stop until you either restructure my account in terms of the In Duplum Rule, or in writing acknowledge that the In Duplum Rule is not valid or do not apply to my account, where I can then seek advise from the NCA.
Kind Regards
Karien Barnard