EXCESSIVE FINES ON TRANSACTIONS: HAVING A R1500 OVERDRAFT REQUEST DECLINED ONLY TO END UP R7000 IN THE RED IN ANY CASE

<p>Towards end of April 2017 I realised that my debtors have not paid as expected and that I will not have enough funds to cover my toll fees which is deducted automatically at a later date when I swipe my cheque card. Having been recently upgraded to premier status (presumably because the bank think I am a good client and are worthy of said upgrade and not because I have hundreds of thousands of rand in the bank) I thought that I would apply for aninstant loan, a product that instantly gives you a small loan but which must be paid back within 30 days. I have used this product once before and have paid back the loan within the prescribed period, yet was informed that I do not qualify. My on-line application for a small over draft was also declined.</p> <p>Because we are not talking a lot of money (I average about R1000 on toll fees per month) I did not pursue the matter further because I was hoping to get at least enough to cover this amount at some time early May. Big mistake. Several toll fees of between R10/R11 were debited end of April and early May. On 12 May I paid in R1600 and was blissfully happy that my account is in good standing again and that all my toll fees are covered. These previously mentioned payments were honoured by the bank even though I did not have any money in the bank. Upon a later query I was told that the bank may do this at its own discretion and that I must then pay back these amount plus interest and fines. No problem so far. What I did not know was that the bank charged R75 for every single transaction that was debited. I was therefore unaware that by the time I paid in R1600, my account was already overdrawn to the amount of R2000. Then the fun started. For every single toll fee debited for the rest of May the bank duly fined me R75. Even thoug these fines on some days amounted to totals of R700 and R1050 I did not become aware of it up because the bank's sms notification system does not notify you of banking fees being deducted. If it had I may have picked up this looming disaster earlier. As it was I only became aware of the situation at the end of May. By that time my account had a negative balance of R5000!</p> <p>Queries to my "personal" premier banker resulted in me being qouted the usual that, as per the fine print in my contract (which nobody reads), the bank are entitled to do this. I may mention that since my query end of May I have paid in a further R3000 yet I am still over drawn with more than R2000. This due to further toll fees being deducted despite me not swiping my card since having become aware of the situation. I proposed that, even though the bank did not think me worthy of a R1500 over draft a month ago, they might be willing to formalise my current "over draft" just to stop me being fined R75 on every R10 being paid, however was informed that this was not an option due to the account not being in good standing! So for now I am holding my breath that there are no more toll fees.</p> <p>Give or take a few transactions the end result is that my toll fees debited for May were approximately R1000. The bank fined me for each and every transaction, a total (excludingthe last week) of R7000. That isapproximately a 700% fine on every transaction, or depending on how you look at it, a cool 700% profit per month on a investment of R1000. </p> <p>My questions to the bank which, suffice to say they did not deemed necessary (prudent?) to answer, is this:</p> <p>-Is the bank and its management honestly convinced that they excercised a proper discretion in this instance ? Did they properly considered their client's as wellas the bank's interest? Keep in mind that had they decline to pay the toll fees I wouls have owed the toll company R1000 as opposed to the R7000 that was, and still is in part, due and payable to the bank.</p> <p>-Even though the bank may technicaly be entitled to act as it did in terms of the contract , does the bank and its management consider this a proper, fair and honourable banking practise?</p> <p>-Is the bank and its management satisfied that by charging a client a fee of 700% the value of the transaction, such an action can in this particular instance be considered ethical and moral?</p> <p> </p> <p>Surely in this particular instant the bank must be incontravention of either the National Credit Act (which replaced the Usury Act) and /or the Consumer Protection Act, or some other act. Even if not, I would speculate that a practice such as this must be contra bonos mores, and , in terms of the common law, offend against public policy and should thus, even though it may be technically a valid transaction, be unenforceable.</p> <p> </p> <p>Regardless, be aware of your bank's fine print. Do not be misled by advertising promising personal service that will take care of your banking needs and/or offering personalised banking solutions. That does not exist. Banks are not in the customer care business, they are there to make money, and FNB made a packet out of me very easily and quickly with minimum risk and capital! Imagine the kind of over draft you must have to pay R7000 interest per month. </p>