By Zuko Komisa
There are ongoing conversations that banking institutions are ripping off many black South African bondholders, systematically and illegally overcharging them.
A Special Assignment broadcast recently exposed the grim realities many black consumers face with the repayments of home loans that have irregular and unlawful interest rate increases.
#KayaUncaptured had a conversation with Emerald van Zyl who started his career as a financial investigating consultant in 1992. In his 25 years of experience as a bond investigator, he has successfully exposed many of the irregularities that banks are using to rip off their clients.
He spoke about the Usury Act, 1968 (Act No. 73 of 1968) which banks have been using to hike interest rates for poor black consumers who are bondholders. Banks claim these consumers are high risk.
“I did find that banks are discriminating against black bondholders, what I want to tell the listeners is that, in 1990 the Usury Act, 1968 was amended to allow for an R5 administration fee, the purpose of that fee was to subsidise bank for any losses due to high risk. It was never to be used for banks to discriminate against black bondholders.”
Van Zyl reveals how he was able to recover more than R223 million in respect of overcharges from financial institutions on behalf of consumers in South Africa, assisting over 1 560 homeowners in stopping the sale of execution of their homes for allegedly being in arrears with their monthly installments.
To listen to the full conversation with Emerald Van Zyl click here: