Involuntary Payment Holiday

I have 2 current loan facilities with ABSA – one a personal loan and the other a mortgage loan. In October 2022, I decided to move both of my debit order payments date for these accounts earlier from the 1st of the month to the 25th of the previous month. I called ABSA that month and was advised to wait until the next debit orders went through, so as not to affect those payments (I was told that the debit orders had already been generated). My payments went through as normal on the 1st of November 2022. Once the payments had gone through, I contacted both the personal loans department and the home loans department at ABSA to change my payment dates. This was in the first week of November 2022. I stressed that the next payment must go through on the 25th of November 2022 and was assured that this would be the case. My home loan payment was debited as requested on the 25th of November 2022. My personal loan payment was not debited. I called ABSA on the 28th of November 2022 and spoke to Buhle Radebe in their complaints department. I explained the situation to her and that I expressly asked the consultant when I called to change my debit order date to ensure that the next payment would be the 25th of November 2022. Buhle Radebe responded to me by e-mail on the 30th of November 2022 as per below: Dear Mr Moodly

With reference to case number C-***4, trusting that this email finds you well.

Once again, thank you for raising your concern with the Bank and allowing me the opportunity to investigate and resolve your complaint. I am glad to inform you that the complaint has been resolved in the following manner:

Kindly be advised that the date was changed to 25th on 02/11/2022.

Please note the changes created the next debit order to be required only on 25/12/22.

Please accept our sincere apologies for the inconvenience that this matter has caused you.

Kind regards ? Buhle Radebe Complaints Case Administrator RBB SA: Everyday Banking Tel: ?***Int: ?+27 (0)11 *** *** I called her and pointed out that I was assured that the payment would go through on the 25th of November 2022. She said that I would suffer no prejudice as the only effect was that I would pay a month later. She also said the home loans system worked differently. I pointed out that ABSA compounded interest daily and that I would pay in effect be paying more. She was unable to understand the concept of compound interest but promised to escalate the matter. I did not receive further communication from her, and my telephone messages were not returned. Only after I mailed her and said that I would vent the matter on Hellopeter, and to consumer journalists as well as refer to the Ombudsman did she call me on the 13th of December 2022. She put me through to a colleague who promised a reply in writing by the next day (14th December 2022). I never heard back from either of them.

Salient points It is not possible to bring your personal loan debit order date forward at ABSA without one scheduled payment not being debited i.e., a Payment Holiday. I believe that this is unfair to bank customers. An extra period when payment is delayed benefits the bank to the detriment of the bank customer. This is not acceptable when this is not at the behest of the customer and against the customer’s express wishes. The consultant that I spoke to at ABSA did not inform me of this. Buhle Radebe confirmed that there is a recording of this conversation. ABSA staff are ******** of the way interest charges work at ABSA and they have apparently never heard the term compound interest. ABSA has no interest in resolving this matter and will ignore it and not redress it unless they are forced to by the Banking Ombudsman or media exposure. ABSA’s action in not respecting my wish to pay my account on the 25th of November 2022 has caused me loss as I now must pay more interest and my paid-up date on the personal loan is extended.