Sanlam Personal Loans: Settlement amount and non-compliance with the National Credit Act

I borrowed R80 000 from Sanlam Personal loans in August 2020 and noted a non-compliance with section 113 of the National Credit Act when I tried to settle the outstanding amount in December 2021.

As per the pre-agreement and section 113 of the National Credit Act, where the consumer wants to pay the total outstanding amount in terms of the Agreement, they must request a settlement amount. The settlement amount is made up of the unpaid balance of your loan amount, unpaid interest, plus other fees and charges payable up to the date of settlement. The Credit Provider will give you the settlement amount at no cost within 5 (five) business days from when you request the settlement quotation. The settlement quotation may be given to you: in person, by e-mail, telephone, or other form of electronic communication. The settlement amount quoted must be paid within 5 (five) business days from the date that it was delivered. If you do not pay the settlement amount within 5 (five) business days, the settlement quotation will no longer be valid. The Agreement will continue as normal and you will need to get a new settlement quotation if you still want to pay up your loan early.

I made a request for a settlement amount on the 10th of December 2021. On the 13th of December 2021 I received a quoted settlement amount letter of R15 166.44 from Nicki Hill (Customer Care Manager). As per the loan agreement and section 113 of the National Credit Act, this amount was supposed to be valid for 5 business days. I then proceeded to make a payment of R 15 301.58 (made up of a debit order of R2721.58 and an EFT of R12 580) on the 15th of December 2021 which was within the 5 business day window from the date of delivery of the settlement amount letter.

I thereafter proceeded to request a statement of account on the 20th of December 2021 (to ascertain that the loan account balance was now Rnil) and was frustrated to see that the outstanding loan amount stood at R1720.86 after taking into account the payment I had made on the 15th of December. I am disappointed that Sanlam Personal loans have decided that the settlement amount letter is not binding and to not to comply with the National Credit Act.