Standard Bank Home Loans and Debt Care Centre is not loyal to their loyal customers

“Struggling to meet your monthly loan repayments? Your financial wellbeing is important to us. We’re here to support you, offering personalised debt relief solutions that can help you reduce your monthly loan repayments. Apply today and let us help you ease your financial pressure.”

Above is the most misleading statement that I have ever read. Sadly, it prompted me to call the bank and apply.

I have been a client of Standard Bank for just over 21 years. My problems started in 2021 after I had started extending my home using a building loan from the bank. I encountered financial issues related to the project, I then approached the bank asking for a further advance, even though I was in excellent credit health at the time and could comfortably afford the repayments, I was turned down, repeatedly. In order to complete the project, I used all the funds I had, maxed my credit card and ended up taking a personal loan to complete the building. In Dec 2021, the project was completed, I submitted all required documents to convert the loan back to an ordinary HomeLoan. The intention was to ask for a further bond in order to pay off the high interest loan and credit card. My home had positive equity.

Instead, I encountered problem #2, an additional 1,5% interest rate, included in the account, was not removed as stated it would be on the loan contract. I contacted the bank to request the removal of this rate but was rejected, repeatedly. This additional rate not only disadvantaged me by making my repayments more expensive, it also contributed negatively by reducing my affordability due the increase in the instalment I was paying, therefore causing me unnecessary stress. I then app**** for a further bond, intention - to ease the burden of high interest loans by consolidating them into the home loan, I was declined, every year since.

Problem #3. I tried debt care centre, reassured by the above statement and the information I had read online (in 2023) that the bank allows clients to consolidate their debt into their home loan accounts. To my shock, though the bank calls the process a consolidation, it is anything but a consolidation as the result of the assessment determined that I should instead have additional funds to cover the repayment as the bank does not take into consideration the fact that paying off the high interest debt would result in a reduction in the instalment (which defines debt consolidation), which would also provide the advertised financial relief. Instead, I was offered and granted a 3-month payment holiday which further added to the burden as the accrued interest became more than the loan amount.

Problem #4. In Nov 2024, I had managed to reduce my obligations enough to have a small available balance. I app**** for a further bond again with the intention of paying off the high interest loans that I am already halfway through paying off, the instalment from just 1 of the 2 loans would have been enough to cover the instalment and leave me with change even at the current interest rate charged on my home loan account. Instead, I was declined due to the bank not wanting me to utilise the little available balance I had left, even though it was enough to cover the instalment of the amount I had requested. Ironically, the amount I was requesting, would have enabled me to have more than sufficient funds available since the intention was to pay off the small balances on a high interest loan (e.g. I owe R66 000 @ 24.5% interest, I pay R3 500 pm).

My credit is not impaired, I have no judgement, my credit score is close to excellent but still no help from the bank as advertised.