First National Bank (FNB) will pay a total of R154-million to 50 000 ex-Saambou customers who were overcharged interest on their home loans, FNB announced on Monday.
”The payment process has commenced as of today [Monday],” said FNB home loans chief executive officer Ed Grondel.
Saambou Bank was placed under curatorship in February 2002, when FNB acquired its home loans book.
It was while conducting due diligence before the acquisition that FNB found there was a possibility Saambou clients had been overcharged. When the Receiver of Revenue decided to settle a limited number of claims made on the bank by an August 31 2005 cut-off date, FNB decided to alert ex-Saambou customers who had missed the deadline or who were unaware of the process.
It promised to reimburse them and decided to recalculate their accounts. The overcharging arose from a decision announced by the deputy registrar of banks in 1990 that interest not be calculated in advance without adjusting interest payable with regard to instalments made before the due date.
”Saambou however did not change its interest calculation methodology accordingly until 1999,” said Grondel.
Of 80 000 accounts recalculated, 50 000 qualified for refunds, he said.
”The remaining 30 000 home loan customers are those whose interest rate was calculated correctly, resulting in no adjustment being required to their accounts.”
The interest had been recalculated from April 1989 to June 19 2006, using the applicable interest rates capped at the maximum determined in the Usury Act, only on those accounts acquired by FNB in 2002.
Interest was calculated on a daily average balance and capitalised monthly in arrears, with all fees charged reversed if the applicable interest rate was higher than three percent below the maximum rate set out in the Usury Act.
Grondel said the money had been paid into newly-opened accounts at FNB, on which no fees or costs would be charged.
”The call account will enable them to decide what they wish to do with the reimbursed funds, whilst earning interest on the refunded amount,” he said.
Customers could choose to transfer the reimbursed funds to their existing home loan accounts if they were still open, or to any other bank account of their choice.
Grondel said they would be notified in writing of the status of their claim and the exact amount to be reimbursed. Those not sure if they had a claim could SMS their identity numbers or account numbers to 31275, check their status on the website www.fnb.co.za, or contact a Saambou special claims centre.
FNB would require certain documentation — including that for Financial Intelligence Centre Act compliance.
”If all the documentation is in order, the funds will be made available to the customer within five working days,” said Grondel. – Sapa