ConsumerTalk with Wendy Knowler, Good to Know with Wendy Knowler, Good to Know with Wendy Knowler

Standard Bank says comedy of errors with bond applicant 'a once off'

Guy Leitch applied for a home loan of R4 million through bond originator Betterbond.

Standard Bank granted him the loan.

Leitch didn’t need R4 million immediately – he wanted an access bond on his property in Simons Town to use in the development of a property in Hoedspruit.

The bond account was opened, but I was told I had to visit a branch to open the access side of the account. I am a private banking client of other banks, so this was the first time I have visited a branch in years. I went to the Long Beach Mall branch of Standard on or about 1 June. There an access account was opened, and I was given a card – which I did not want.

Guy Leitch, Standard Bank home loan applicant

A branch employee told Leitch that having a positive balance in the access account reduced the interest the bank charges.

Standard Bank transferred R4 million into the “access” account and an assistant helped Leitch to load the bank’s app on his phone.

Leitch went abroad for six weeks.

Upon his return, he discovered he wasn’t earning any interest on the positive balance of R4 million.

So Standard Bank has had my funds for six weeks yet has paid no interest. Neither has the bank reduced or offset the interest paid on my home loan account. This is completely against the principle of an access bond.

Guy Leitch, Standard Bank home loan applicant

Leitch lost about R41 000 in interest.

Charging interest for money you have not withdrawn is just not on!

Guy Leitch, Standard Bank home loan applicant

Neither Standard Bank nor Betterbond responded to his complaints, so he contacted consumer journalist Wendy Knowler.

"Very soon" after Knowler took up the case, Standard Bank refunded him R57 000, despite him only asking for R41 000.

They said they will phone me to open a proper Standard Bank Access Bond account - whatever that is. And why do they need two accounts for a home loan?

Guy Leitch, Standard Bank home loan applicant

Standard Bank says it was just a misunderstanding.

He did not sign an application for an access bond - he signed an application for one of Standard Bank’s base transactional account, which they call an “Access” account.

It had nothing to do with a home loan access bond at all!

How the consultant didn’t pick that up is mind-boggling, given the amount being transferred into that noninterest earning account!

Wendy Knowler, consumer journalist

We’ve never seen anything like this. It’s a one-off. It’s quite unusual for someone to apply for a home loan on an existing property of theirs to use to develop another property.

Andrew van der Hoven, Head of Home Loans - Standard Bank

Standard Bank requires those who have a home loan with them to have a transactional account as well so they can move their money around easily online, said Van Der Hoven.

It just so happened that we have a transactional account called an access account, hence the confusion. He thought it was an access bond.

Andrew van der Hoven, Head of Home Loans - Standard Bank

How did the bank miss this and not answer Guy’s emails, asked Knowler?

Why did it take so long to respond?

Their answer?

They don’t know; they’re very sorry.

I did make it clear to Betterbond that it had to be an 'access bond' as I will be building and did not know for how much, or when we would be able to start. I am not an idiot - I was for a while the MD of a division of Nedcor - looking after Properties in Possession. I have an MSc in Housing Finance. The bottom line is they were charging me interest on money they had not given me, that I had not asked for, and didn’t want.

Guy Leitch, Standard Bank home loan applicant

The Money Show’s Bruce Whitfield interviewed Knowler about this case.

Listen to the interview in the audio below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Blueberry production – and employment - skyrockets to all-time high

Blueberry production – and employment - skyrockets to all-time high

In 2014, 1000 people had blueberry jobs. By 2023 it could be 26 000. Bruce Whitfield interviews the industry's Sean Tager.

Old Mutual ups the ante in its bitter battle with Peter Moyo

Old Mutual ups the ante in its bitter battle with Peter Moyo

Bruce Whitfield interviews Peter de Beyer (Old Mutual Non-Executive Director) and Karl Gevers (Benguela Global Fund Managers).

'Nobody can now claim to be exonerated by the Seriti commission'

'Nobody can now claim to be exonerated by the Seriti commission'

Bruce Whitfield interviews David Lewis (Corruption Watch) and arms deal activist Terry Crawford-Browne.

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Lagos to become the world’s largest city with a population of 100 million

Lagos to become the world’s largest city with a population of 100 million

Lagos - home to 22 million people – is suffering an extreme housing shortage. Bruce Whitfield interviews Lee Kasumba.

What ‘fruitless’, ‘wasteful’, ‘irregular’ and ‘unauthorised’ expenditure mean

What ‘fruitless’, ‘wasteful’, ‘irregular’ and ‘unauthorised’ expenditure mean

When the Auditor-General says “fruitless and wasteful expenditure”; what does it actually mean? A dummies' guide...

Popular articles
'Old Mutual directors facing imprisonment over Moyo sacking'

'Old Mutual directors facing imprisonment over Moyo sacking'

Moyo's' lawyer says court granted Moyo permission to introduce new evidence in his bid to have Old Mutual declared in contempt.

Who influenced the colours of Bo-Kaap? New podcast investigates

Who influenced the colours of Bo-Kaap? New podcast investigates

In a new series, Haji Mohamed Dawjee and Rebecca Davis unravel a number of myths and uncovers why the houses are colourful.

Your financial advisor probably earns a commission. That’s a huge problem

Your financial advisor probably earns a commission. That’s a huge problem

Your advisor’s "free" advice may cost you dearly. Pay by the hour, warns personal finance expert Warren Ingram.

Gautrain Sandton water cut until Gupta-linked company pays City R8m - Mashaba

Gautrain Sandton water cut until Gupta-linked company pays City R8m - Mashaba

Joburg City mayor explains the irregularities around ownership of the Gautrain Sandton Station land by Cedar Park Properties.

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

'Duke and Duchess of Sussex visit highlights goodness of South Africa'

Professor Pitika Ntuli weighs in on Prince Harry and Meghan Markle's tour of the country.

'We have evidence that the EFF and Julius Malema took bribes for tenders'

'We have evidence that the EFF and Julius Malema took bribes for tenders'

Arabile Gumede interviews Stefaans Brummer, a journalist at the amaBhungane Centre for Investigative Journalism.

N West teacher suspended over photo of black and white pupils seated apart

N West teacher suspended over photo of black and white pupils seated apart

Images on social media show black and white pupils seated at separate tables, allegedly at a primary school in Schweizer Reneke.