FNB MAY BE UNDER FINANCIAL DISTRESS

So about 10 years ago we made a choice to invest in property with the aim of building a small property portfolio to provide us with an income in retirement. Two of these properties are bonded with FNB. During the last 10 years we've fell on some hard times due to retrenchments etc, but through it all we managed to maintain the payments due on the bonds by sacrificing other expenses, since our retirement plan is our priority. Unfortunately one of the sacrifices we've had to make was cancellation of medical aid, which actually helped us to get back on our feet again. An unfortunate accident occurred where my daughter experienced a knee injury which now requires surgery at a cost in excess of R100k. Since we don't have any medical aid the decision was made to apply for a re-advance on the FNB bonds. Applications were submitted towards the end of Mar-19 and were declined on the basis of affordability. We couldn't understand this as we've been quite fortunate this year in that our average income as commission earners left us with a surplus. After a lengthy fight with them to the point where I actually went to their head office in Fairland and where the matter was escalated to their Homeloan Sales Manager, Thando Made who then escalated our concerns to the credit managers, the applications were approved on 27-May, two months after the initial application. The bottom line is that they didn't take into account all our sources of income which obviously resulted in a skewed affordability matter. Whilst that was a terrible experience on its own, the purpose of this review isn't quite focused on that, but rather on the terms provided for the approvals. On the one bond the current interest rate is 9.1% per annum and on the other one it's 9.3% per annum. Monthly account fees are R40.25 and R57.50 respectively. In the terms of the approvals they've changed this to an interest rate of 10.75%, so 1.45% up on the one and 1.65% up on the other and as if that's not enough, the monthly account fees have been changed to R69 and R230 per month respectively which results in an increase of 171% on the one bond and a whopping 400% on the other. Upon raising a dispute about this with Thando Made, the response was: "As per discussion at start of the application, the rates were subject to change on accessing further lending. This is the best price the bank can afford to approve credit lending at this moment. Our fees have increased in line with other institutions and the National Credit Regulator." Seriously!!!??? That's your reply??? So typical. When you noted that the interest rate would be adjusted, any reasonable person would expect an adjustment of about 0.5%, not 1.45% or 1.65%. In addition, how do you justify an increase of 400% on bond account fees from R57.50 per month to R230 per month??? Why is the fee on this bond not aligned to the other bond??? My overall impression here is that FNB my be under financial distress so they're using this opportunity to milk us as vulnerable consumers in order to correct whatever financial distress they're under. At the end of the day, since we're desperate to get the loan in order to get the surgery done on my daughter's knee, we have very little choice but to take up their offering as moving the bonds to another institution will result in further registration fees and even more delays. The tactic they use here is very similar to that of a typical loan shark, so my advice to any other consumer out there, think twice before you consider FNB. FNB, I am clearly not a pleased customer and you are not the bank you were 10 years ago when we decided to move our entire portfolio to you.