Interest Rate updated from 12% to 24%

Good day,

Absa VAF Account No.: 846 603 32

I hold vehicle finance account with the Bank; it's been 4 years now. Interest rate at inception: 11% p.a. Interest Rate at Present: 24% p.a. Monthly installment per contract: R 3 800 Monthly installment at Present: R 4 700 On 01st Sept 2017 I noted on my Bank statement that the monthly installment on my account had increased significantly; by over R 900. I then immediately queried the account telephonically with Absa VAF Contact Centre; demanding that the additional amount be refunded. To my surprise I was informed by the ABSA Consultant that the reason for the significant increase was due to the fact that the interest rate on my account has been changed to 24% p.a. following the recent "decrease" in Prime Interest Rate.

I argued that the interest rate on my account was previously +- 12% p.a. ; also the Prime Interest Rate as Published by the Government is currently at 10.25% p.a. Thus it did not make sense for Absa to increase the rate to more than double what it should be.

The Consultant confirmed this to have been an error from the side of the Bank and that it would be escalated to be resolved/ rectified within 3 to 5 working days.

It has now been more than 30 days; the matter is still not resolved. I am constantly receiving phone calls from the Bank and yet no solution to this matter. I have spoken to +-5 Consultants explaining the situation and my grievance. I even went as far as filing a formal complaint with Absa Complaints Department (Case No.: 346 04 06); but I am still left with questions and no solution.

This has a huge effect on my account and the total repayment of my vehicle; and affects me negatively as it now means overall I will be paying more for the vehicle to what was agreed upon. I am disappointed with the service I am getting from the Bank; as this is one of many I have experienced over the past 4 years. I am now sourcing other means to terminate this contract and never do business with Absa Bank again.

Thank you.