STANDARD BANK HOME LOAN RIPPING CLIENT OFF

In March 2007, I entered into a bond/ home loan agreement with Standard Bank for R540,000 for a period of 20 years. Over the 18 years that followed, I paid more than R1.8 million towards the bond. While my payments were not always consistent during the last decade due to financial difficulties, I regularly made substantial lump-sum payments to reduce arrears and make up for missed instalments.

Despite these payments, the outstanding balance continued to increase, and by last year Standard Bank claimed that I still owed approximately R808,000. Concerned that the debt had grown beyond what I thought was legally permissible, I referred the matter to the Ombudsman, arguing that the in duplum rule should have limited the amount of interest that could accrue and that with the amount of money already paid to the bank, Standard Bank could write the debt off.

Following the Ombudsman's involvement, Standard Bank proposed a compromise by applying the in duplum rule and offering a full and final settlement of R404,000. In March this year, I responded with a settlement proposal of R350,000. The bank later counter-offered, they proposed we pay R350,000 plus sign agreement to pay off the R54,000 plus the bond cancellation costs, but that the R404,000 as a full and final settlement was still on the table.

After considering the options, I accepted the bank's offer of R404,000 as a full and final settlement. However, Standard Bank subsequently withdrew that position and dishonoured their word and advised that I would now be required to pay the R404,000, bond cancellation costs, and approximately R40,000 in external legal fees even though I wanted to correspond directly with the bank.

This matter has been ongoing since March and has caused significant frustration because we only receive correspondence from the bank 3 weeks after we email them. I am deeply dissatisfied with Standard Bank's handling of the matter and believe their conduct has been inconsistent and disingenuous especially on the settlement arrangement. As a result, I am considering seeking independent legal advice to protect my interests and obtain clarity regarding my rights and obligations. All we want is a settlement agreement so we can settle the property successfully and end this nightmare with Standard Bank.