A bad service

Subject: Formal Complaint: Escalation Interest Charged on Account ***

Good day,

I am writing to formally dispute the charging of “escalation interest” on my account (Account Number: ***), as reflected on my statement for the period 01 May 2026 to 31 May 2026.

Despite making payments on my account, including an upfront payment of R20,000, I note that an amount of R1,222.05 was charged as escalation interest during May 2026. This charge is not clearly explained on my statement, nor has its contractual basis been adequately justified.

While I acknowledge your explanation that the amortisation schedule is a projection and that the statement reflects actual transactions, this does not address the following critical concerns:

1. The contractual basis for charging escalation interest 2. The specific trigger that resulted in escalation interest being app**** in May 2026 3. Whether escalation interest forms part of the original amortisation schedule 4. How the escalation interest amount of R1,222.05 was calculated

In terms of the National Credit Act, any interest or additional charges must:

* Be expressly provided for in the credit agreement * Be app**** in accordance with disclosed terms * Be transparent and capable of verification

At present, I have not been provided with sufficient information to confirm that the escalation interest charged complies with these requirements.

I therefore formally request the following:

1. A copy of the original amortisation schedule applicable to my agreement 2. The exact clause in my credit agreement that permits escalation interest 3. A detailed calculation showing how the escalation interest charged in May 2026 was derived

Pending receipt of the above information, I reserve my right to escalate this matter to the National Credit Regulator (NCR) or the Credit Ombud should the charge be found to be unjustified.

I trust that this matter will receive your urgent attention and that a full written response will be provided.