NEDBANK APPLYING ******* SET OFF (DEDUCTION) ON MY ACCOUNT

On Thursday 22/11 R1,200 was deducted from my account ********** .

On Friday I called Nedbank who transferred me to Nedbank Legal who confirmed that the payment deducted was for a personal loan I had with Nedbank from 2015 and said that they could not assist me , I need to speak to the attorneys who the account has been handed over to. I contacted the attorneys and informed them that this loan was in fact written off and/or prescribed as shown on my credit profile. I further requested that they send me the signed contract, which up to now, I have not received.

On Monday 26/11 a further R11,458.77 was deducted from my account and reflects as "Investment made" on my bank statement. Upon querying this with Nedbank via telephone on Monday, I was informed that this amount pertains to a personal loan. (screenshot attached)

Nedbank has not made any contact with me whatsoever to inform me of deductions made to my account or to ascertain and assess what my current financial standing is. Nedbank has simply gone ahead without notification or authorization and deducted EVERY LAST RAND in my account, almost my entire salary which means that I am now left destitute as I can now not provide for my 3 children, of which 2 are infants nor pay rent or put food on the table.

Nedbank has app**** an ******* SET OFF on my account.

Section 90(2)(n) of the NCA prohibits an automatic set-off without compliance with s124 of the NCA.

S124 of the NCA sets out the conditions for set off in terms of acredit agreement incorporating a clause authorising taking funds from a debtor’s account in set-off of a consumer’s obligation in terms of a credit agreement.

Section 124 says that a creditor must get the customer’s authorisation, specifying:

1. the account from which the funds can be withdrawn; 2. the debt which is to be paid; 3. the amount which may be transferred; and 4. the date of the transfer.

The bank MUST NOTIFY the customer of the intended set-off together with details of the transaction before collecting funds from the account.

Credit agreements entered intobefore june 2007, had a automatic set of clause inserted. After june 2007, this clause was prohibited ito the NCA. So you would have to look at the the time when the agreement was enteredinto.

See the Banking Code of conduct on the Bank Ombudsman website:-

"For loans enteredinto after 1 June 2007 the NCA now prohibits a bank from inserting a set-off clause in their contracts [Section 90 (2) (n)]. The NCA further prohibits the bank from debiting an account for a loan repayment unless the customer has agreed beforehand that the account may be debited [Section 124]."

I hereby give Nedbank instruction to IMMEDIATELY release the funds that were taken from me via ******* set off.

I am further lodging a complaint with the banking ombudsman to investigate this matter.