In partnership with
  • Terry Bell's Inside Labour

    The PIC, which holds nearly R2trn of workers’ pension funds, needs to come clean or face legal action.

  • Ian Mann's book review

    Both giants and SMEs need to be prepared for the 15 disruptive forces that are driving change.

  • Redeem yourself, Gerrie!

    In joining AfriForum, Gerrie Nel has moved out of the reputational frying pan into the fire, says Solly Moeng.

Loading...

Worry over debit orders and public holidays

Feb 10 2015 09:59

A Fin24 user wants to know how he can avoid bank penalties for debit orders that go off on a public holiday, as he is not in control of this. He writes:

I have a home loan with one of the banks, and the debit order goes off on the 25th of every month. I noticed that my bank (FNB) does not deduct the money when the 25th falls on a Sunday or a public holiday and slaps me with interest for that day as was the case in December where they charge me interest for two days - 25 and 26 December. Is that legal?

READ: Creditors allowed to ignore debit order dates

Tommy Nel, head of credit at FNB Home Loans responds:

Like other South African banks and as a function of the current National Payment System, FNB is unable to debit customers’ accounts with their loan repayment on non-business days.

This unfortunately does mean that customers will be charged additional interest, effectively in terms of the amount of the monthly repayment, for the delay between actual billing date and the day that their debit order runs on the account.

It is important however to note, that in this regard, clients will in fact benefit as a result of having the funds in the source account for the period of this delay as well, and in many cases this would be at the higher rate of interest that they would pay on their current account, i.e. when the current account is in overdraft.

*Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner. 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

fnb  |  money  |  money clinic
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Have you considered your options for retirement?

Previous results · Suggest a vote

Loading...