A Fin24 user who borrowed R8 000 and three months later lost his job, says the bank now demands R40 000 after he settled the amount with his pension pay-out a few months later. He writes:
I'm having a problem with Nedbank. In February 2006 I borrowed R8 000 and in May I lost my job. I made an arrangement to settle the debt when I get my pension pay-out in three months' time. In August, when I received my pension, I went to one of the branches and paid the settlement at the time.
Now they are sending me SMSs, saying they are going to attach my stuff because I owe them R40 000 and I’m liable to pay after eight years. Can you please advise on what I should do?
Independent debt expert Renee Marais answers:
At the time you settled the debt, did the bank give you a statement/paid up letter? If the bank did not provide you with a paid up letter but you have your proof of payment to show that you indeed did pay the debt in full you can also use that.
READ: Debt paid up - what now?
You simply attach a copy of the proof of payment/ paid up statement/ paid up letter to the bank or use this link to complain online.
This will prove to Nedbank that they have received their money and should stop harassing you.
It is illegal to harass or threaten someone, including through SMSs. Read the Protection from Harassment Act.
However I have to inform you that SMSs sent by creditors are usually electronically generated and it is possible that the information that you have settled the debt in full did not reach the person responsible in programming the email server.
It is not a legally binding way to inform consumers of legal action.
The National Credit Act 34 of 2005 is explicit in what steps any creditor must take before legal action.
The bank is required to serve you a formal section 129 letter via your postal address to the correct Post Office for you to collect.
No creditor is above the law and they must comply with the sections and regulations in the Act.
If however you have received such a letter, you can respond to that with the proof of payment and demand that they provide you with a paid up letter.
I would advise you to take your proof of payment to the nearest Nedbank branch and request a paid up letter and/or a statement showing a R0.00 balance.
Please also check your ITC report to ensure that it reflects the correct credit status for you.
If none of this is solving the problem, then please use form 29 (found on the NCR website) and refer the matter to the NCR for investigation.
The NCR stands for the National Credit Regulator and they are the governing body of the creditors, debt counsellors, payment distribution agents and credit bureaus.
*Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
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