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Charging interest for money you have not withdrawn is just not on!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
'If you still have a job, get rid of your debt as fast as you can'

'If you still have a job, get rid of your debt as fast as you can'

Personal finance expert Warren Ingram has advice on how to survive – or even thrive – amidst the Covid-19 outbreak.

Covid-19: Struggling to pay - or collect - the rent?

Covid-19: Struggling to pay - or collect - the rent?

The Money Show's Bruce Whitfield interviews property lawyer Julian Scher about rental payment problems caused by Covid-19.

COVID-19 infections jump to 1,462 - Mkhize

COVID-19 infections jump to 1,462 - Mkhize

He made the announcement on Thursday evening in Bloemfontein.

Black dog syndrome: #ThePawcast's Lauren Palmer explores the phenomenon

Black dog syndrome: #ThePawcast's Lauren Palmer explores the phenomenon

Black Dog Syndrome is a phenomenon in which black dogs are passed over for adoption in favour of lighter-coloured dogs.

Eskom is making the best use of the crisis - André de Ruyter, CEO

Eskom is making the best use of the crisis - André de Ruyter, CEO

The Money Show’s Bruce Whitfield interviews Eskom CEO André de Ruyter about the utility’s plans during the Covid-19 lockdown.

'Thousands of ordinary South Africans have contributed to the Solidarity Fund'

'Thousands of ordinary South Africans have contributed to the Solidarity Fund'

It's an enormous humanitarian effort. Bruce Whitfield interviews Dr Adrian Enthoven, Deputy Chairperson at the Solidarity Fund.

Doctors launch helpline to provide free medical advice to South Africans

Doctors launch helpline to provide free medical advice to South Africans

Head of the KZN Doctors Healthcare Coalition Professor Morgan Chetty has more details on the national medical support hotline.

Website for a good cause wants you to participate in virtual volunteering

Website for a good cause wants you to participate in virtual volunteering

Forgood.co.za, which connects people to causes around the country, suggests ways that you can help.

Free service to tackle human resource queries during the COVID-19 lockdown

Free service to tackle human resource queries during the COVID-19 lockdown

Strata-G Labour Solutions is offering a free hotline for employers to get clarity on HR-related matters during the lockdown.

Duduza Clinic nurse tests positive for COVID-19, other nurses awaiting results

Duduza Clinic nurse tests positive for COVID-19, other nurses awaiting results

Mayor of Ekurhuleni spokesperson Phakamile Mbengashe says they have deployed two mobile clinics to the area.