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A Fin24 user who calls herself 'Desperate' feels Capitec charges ridiculous interest rates. She writes:
In 2012, I took out a loan with Capitec Bank Holdings [JSE:CPI] where they increased my term period each time i requested a new loan.
The loan amounted to R82 000 over 43 months; the last loan was October 2012.
Well, Capitec don't issue loan statements, so I never kept a record of my outstanding balance. My account has always been up to date.
In March 2013 I experienced a financial crisis which has set me back; I was unable to stick to my monthly payment which is R3 451.00 and never missed a payment. I went to my nearest branch to asked if Capitec could reduce my monthly payment.
After a long argument with the consultant, Capitec eventually agreed to reduce my monthly payment to R1 700 for six months starting April 2013 to September 2013. Even if my financial issues were not resolved, my monthly payment would be increased to the original instalment amount of R3 451.
Capitec also advised me that my last instalment, which will be due in September 2013, will be R5 500 and will be deducted from my salary, which I will not be able to afford.
That is where the disagreement came in with the sales consultant - I tried explaining to her that my financial issues will not be resolved by September 2013. I requested a loan statement and could not believe what I saw on my statement: interest charges of over R2 200 monthly were added to my account.
When I queried my account at the branch, I could not get a valid explanation from the manager and was asked to call head office.
Can I ask the National Credit Regulator to assist me?
Capitec sent the following response:
"Desperate" raises several issues, but misrepresents the facts to make her case.
• All of Capitec's interest rates are within the law, and are among the lowest in the unsecured credit industry. The interest charged remains consistent with the amount quoted to the client and printed on the contract that she signed.
In this case the interest is 31% per year, but the client was not charged any initiation fee, nor does she pay for the free death and retrenchment cover given.
• We don't send out loan statements by post, but they are always available in-branch at the client's request. They are also available on Internet Banking or by phoning Capitec’s 24-hour Client Care Centre. We are working on making the facility available on Mobile Banking.
• The client implies that Capitec Bank extended the term on her existing loan against her wishes. This is untrue. Capitec Bank made an additional offer of a new, longer term loan that the client could choose to take up or reject.
In this case, the client chose to take up our offer. The client then subsequently contacted us to reduce her instalment for a period, and thereby extend the term of the loan.
• The instalment of R5 500 quoted is untrue. When rescheduling the loans of clients, we do a complete assessment to calculate the new instalment that they can afford.
In this client’s specific case, the highest instalment due in a month is R3 507.90. This is well within the ability of the client to afford, based on the income and expense information that she furnished us with.
- Fin24
In 2012, I took out a loan with Capitec Bank Holdings [JSE:CPI] where they increased my term period each time i requested a new loan.
The loan amounted to R82 000 over 43 months; the last loan was October 2012.
Well, Capitec don't issue loan statements, so I never kept a record of my outstanding balance. My account has always been up to date.
In March 2013 I experienced a financial crisis which has set me back; I was unable to stick to my monthly payment which is R3 451.00 and never missed a payment. I went to my nearest branch to asked if Capitec could reduce my monthly payment.
After a long argument with the consultant, Capitec eventually agreed to reduce my monthly payment to R1 700 for six months starting April 2013 to September 2013. Even if my financial issues were not resolved, my monthly payment would be increased to the original instalment amount of R3 451.
Capitec also advised me that my last instalment, which will be due in September 2013, will be R5 500 and will be deducted from my salary, which I will not be able to afford.
That is where the disagreement came in with the sales consultant - I tried explaining to her that my financial issues will not be resolved by September 2013. I requested a loan statement and could not believe what I saw on my statement: interest charges of over R2 200 monthly were added to my account.
When I queried my account at the branch, I could not get a valid explanation from the manager and was asked to call head office.
Can I ask the National Credit Regulator to assist me?
Capitec sent the following response:
"Desperate" raises several issues, but misrepresents the facts to make her case.
• All of Capitec's interest rates are within the law, and are among the lowest in the unsecured credit industry. The interest charged remains consistent with the amount quoted to the client and printed on the contract that she signed.
In this case the interest is 31% per year, but the client was not charged any initiation fee, nor does she pay for the free death and retrenchment cover given.
• We don't send out loan statements by post, but they are always available in-branch at the client's request. They are also available on Internet Banking or by phoning Capitec’s 24-hour Client Care Centre. We are working on making the facility available on Mobile Banking.
• The client implies that Capitec Bank extended the term on her existing loan against her wishes. This is untrue. Capitec Bank made an additional offer of a new, longer term loan that the client could choose to take up or reject.
In this case, the client chose to take up our offer. The client then subsequently contacted us to reduce her instalment for a period, and thereby extend the term of the loan.
• The instalment of R5 500 quoted is untrue. When rescheduling the loans of clients, we do a complete assessment to calculate the new instalment that they can afford.
In this client’s specific case, the highest instalment due in a month is R3 507.90. This is well within the ability of the client to afford, based on the income and expense information that she furnished us with.
- Fin24
