Standard Bank Accused of Overcharging on Defaulted Mortgage Payments

Standard Bank, one of South Africa's most significant banking institutions, currently faces harsh criticism as another couple, Patrick Anthony and Polin Anthony, come forward with allegations. They accuse the bank of overcharging their mortgage loan payments after default. The scandal saw light on August 29, 2023, when an eyewatering amount of R124 047.34 was debited from the Anthony family's bank account, allegedly tied to an unnatural interest rate hike on their loan from prime -1% to 1%.

Emerald van Zyl, the family's financial consultant, carried out an independent investigation of the incident. According to his calculations, this unexpected interest hike has resulted in an overpayment of a staggering R135 301.30. The allegation claims this arbitrary increment by Standard Bank of the prime rate is a breach of the National Credit Regulator's guidelines. Further, standard bank is believed to utilize this methodology specifically for clients that default on their payments.

Despite repeated pleas from the Anthony family and van Zyl to refund the overpaid amount, the bank has firmly refused, consequently impacting the couple financially. In response to Van Zyl’s persistent requests, Loggenberg from Standard Bank assured that the initially contested amount had been credited back to the customer's home mortgage account. However, consistent appeals from the plaintiffs remained unaddressed; they demand the refund be deposited into their private account instead.

The lack of transparent communication from Standard Bank continues as they struggle to share customer details, leaving many questions unanswered. Van Zyl persists in his assertion, claiming that the breached agreement and consequential overcharge is payable to the clients' private account, not their mortgage loan. In an environment of escalating tensions, he vows to hold the bank accountable for these allegations.