Bad taste Standard Bank

Recent articles in the media outlined the court case in the South Gauteng High Court which was initiated by the National Credit Regulator (NCR) against Standard Bank, where the court ruled in favour of the NCR.

The outcome of the court case on the 27th June 2019 was that it is no longer legal for a bank to take money from your account in settlement of debts falling under the National Credit Act (NCA) unless you specifically authorise it.

The judgement can be found at SAFLII here.

Read the articles from MoneyWeb and Business Insider.

It just so happens that a friend of mine, has a Standard Bank account and on the 27th June, his Overdraft Account was used to settle his Revolving Credit Account.

Here is his account of what happened…

“So I am with Standard Bank and I have not been contacted by them since December 2017 as per my own bank records. Last week Thursday (27th June) at about 10:00 they took R20,000.00 out of my (overdrawn) cheque account to “set-off” against my arrears Revolving Credit loan.

I have not been able to pay my kids school fees or my rent. I am currently sitting without electricity and a maxed out Cheque account waiting for some funds to come in.

I suspect that either [A] the bank saw this judgement coming and instructed all their departments to deduct as much as they could from as many people as they could before the ruling or [B] they did this illegally after the ruling. Either way, they still took it from an overdraft facility, which in itself is probably illegal.” He said.

He is not looking at tackling a monster like Standard Bank, but wanted people to be aware of what they did and for everyone to check their bank accounts to ensure the same has not happened to them as well!

My opinion is that something smells here and maybe the NCR should ask Standard Bank to disclose what they did and insist on them undoing the wrongs that have been committed against their clients.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

4 + 18 =