Blacks “Ripped-Off” by FNB Wait & Some Die while Bank Plays Games

5a96dacb4b2b4aa59817d16f5ddce18a

By Pinky Khoabane

5a96dacb4b2b4aa59817d16f5ddce18aJacques Celliers, CEO of FNB

SIX Months after failing to submit its expert witness report in the interest rates discrimination case in the Equality Court, First National Bank has finally submitted its report which is an exact replica of a report it used 6 years ago in the trial against Emerald Van Zyl. Van Zyl is the financial investigating consultant who, in 1998, discovered that Saambou was charging its clients interest in advance in contravention of the Usury Act.

What this meant was that clients were charged interest on the entire bond before they even used it. Then further interest was calculated at the end of each month. The net effect was that clients who were scheduled to repay their bond in 20 years found it was extended by another 10 years.

First National Bank bought Saambou’s home loan book when the latter collapsed in 2002. Although FNB obtained the mortgage book of Saambou for R1 after the bank collapsed on 9 February 2002, it obtained the Low Cost Housing mortgage book by securitisation in 1998/1999. This was confirmed by the Curator of Saambou, Mr T.J. Louw, in his founding affidavit as follow: “On my date of appointment (9 Feb 2002) Saambou had directly or indirectly sold to other banks mortgage loans to a value of approximately R 2.6 billion, all of which are now held by FirstRand Bank Limited”.

Based on the statements of Low Cost Housing clients, it’s clear  that FNB started to administer the Low Cost mortgage book from 2 February 1998. The main discrimination started in February 1999. FNB was therefore the proud owners of the Saambou mortgage book of Low Cost Housing when the discrimiantion started. It is therefore responsible for the discrimination and should refund every low cost housing client, because they collected the illegal interest.

In 2005, it acknowledged that Saambou had overcharged clients in interest rates and reimbursed some of them. Van Zyl however disputed FNB’s calculation – a matter which went to court and which he lost. He today represents thousands of Black clients who took out home loans with Saambou on the eve of democracy and whose accounts were taken-over by FNB during the acquisition.

In a class action represented by Magdalena Pietersen, Lukas Maarman and Soon Boesak, thousands of low cost housing bond holders – all Black and living in townships – have accused FNB of charging them interest rates higher than those of their counterparts who hold high-cost home loans. The bank is also accused of  denying them the benefits of interest rate cuts. Furthermore, a large percentage of them were charged interest rates above the permissible amount in terms of the Usury Act. Liliandah Chokwe, for example, was charged 21.5% on her home loan at a time when banks were allowed to charge upto 14% interest and no more. This was a shocking 7.5% more than was allowed in terms of the law.

This latest delay forms part of FNB’s series of delaying tactics in the case. Late last year it queried the jurisdiction of the Western Cape Equality Court where the matter was to be heard in March this year. When that failed, it constantly failed to meet the deadlines for submission of the expert report. And when it finally produces the report, it happens to be a duplicate of what it already had six years ago.

In a pre-trial meeting of 22 September 2016, it was decided that the expert reports would be filed by 30 November 2016. At the pre-trial meeting on 23 February 2017 is was noted in paragraph 5.3 as follows:
“The experts that will testify about the calculations will meet on a date before 28 April 2017 to record the matters of common cause and the disputed matters. A minute of the meeting will be prepared and filed”.
At present, the complainants have not received notification from FNB related to the experts meeting. FNB has not submitted the re-calculations of interest to back their assertion that the complainants were not over-charged. The complainants fear the financial institution will use this tactic to ask for yet another postponement at the next pre-trial meeting before Honourable Judge Fortuin on 5th June 2016 due to the fact that the meeting between the experts did not take place.

More articles on the FNB Interest Rates Scandal

How FNB robbed Black Bondholders of R3bn and ended in the Equality Court

How FNB cheated Magdalena Pietersen of interest rates cuts

http://uncensoredopinion.co.za/1267-2/

http://uncensoredopinion.co.za/blacks-robbed-fnb-running-patience/

 

 

 

9 Comments on "Blacks “Ripped-Off” by FNB Wait & Some Die while Bank Plays Games"

  1. Although FNB obtain the mortgage book of Saambou for R1 after the bank collapsed on 9 February 2002, FNB obtained the Low Cost Housing mortgage book by securitasation in 1998/1999.
    This was confirmed by the Curator of Saambou, Mr T.J. Louw, in his founding affidavit as follow:-

    “On my date of appointment (9 Feb 2002) Saambou had directly or indirectly sold to other banks mortgage loans to a value of approximately R 2.6 billion, all of which are now held by FirstRand Bank Limited”.

    From the statements of Low Cost Housing clients, it’s noted that FNB started to administer the Low Cost mortgage book from 2 February 1998. The main discrimination started in February 1999. FNB was therefore the proud owners of the Saambou mortgage book of Low Cost Housing when the discrimination started. So they are responsible for the discrimination and responsible to refund every low cost housing client, because they collected the illegal interest.
    FNB, up to now has refused to answer any questions related to the take over of Saambou Low Cost Housing. We are now in the process of summonsing the Chief Executive Officer of First Rand at that time, Mr. P.K. Harris to attend the trial to provide us with all the needed information related to this take over.

    • Pinky Khoabane | May 24, 2017 at 7:29 pm | Reply

      We wish you and your clients a speedy resolution to this matter, whether it will be is another issue. Five years on and FNB is still playing delaying tactics. It is preposterous and that there isn’t enough media coverage of the matter tells you whose side commercial media protects.

      Kindest

      PK

  2. I am one of the victims on the long outstanding matter. We urge that the Court must finalized the matter since justice is delayed…
    Support the selfless efforts that Mr E. Van Zyl pursuit…

    • Pinky Khoabane | May 24, 2017 at 7:25 pm | Reply

      This is a tragic story being dragged through the courts for no good reason but greed of these financial institutions. Aluta Continua

  3. Dear PK,

    Once again, on behalf of the People of South Africa : THANK YOU for your TIRELESS, Brilliant, Insightful Reporting. GOD will Richly Bless you dear – you can count on it. It says so in the Bible.

    1.
    Am I right PK – it looks to me that You are the only one in the media who still does support ‘poor old Emerald’ in his FIGHT FOR JUSTICE. His FIGHT for THOUSANDS of so-called ‘poor’ ‘blacks’, ‘coloured’ and Indian bank CLIENTS who have been DISCRIMINATED against (BY THEIR OWN BANK !!!!) because of ‘the colour of their skin’ AND to satisfy the Hate in the ‘hearts’ of RACISTS like “JR” Johann Rupert and his “friends”.

    Emerald is representing these THOUSANDS of ‘poor’ so-called ‘black’, ‘coloured’ and Indian CLIENTS of this RACIST bank.

    Emerald is the EXPERT for these THOUSANDS of First National bank CLIENTS in these 3 x Equality/‘Human Rights’ Courts in Cape Town, Gauteng, Tshwane.

    2.
    Face it PK – Legally, this is Cunning Deceitful THEFT. THEFT by this RACIST bank, from this RACIST bank’s very OWN CLIENTS – the so-called ‘poor’ ‘black’, ‘coloured’ and Indian CLIENTS of this RACIST bank – First National bank. Right.

    This RACIST bank which is owned by “JR” Johann Rupert with his “friends”; “friends” like “GT” Ferreira, “LL” Dippenaar, “PK” Harris (no relation of mine – SIS!), “Viv” Bartlett and others.

    3.
    Please PK continue to help Emerald to get this THEFT into Court in Cape Town, Gauteng and Tshwane – where the first about 10 of these THOUSANDS of Cases have been brought, and now lie, before 3 Judges.

    4.
    Once the EXPERT, Mr. Emerald van Zyl, speaks Truth in the first of the 3 x Cases in the Cape Equality High Court – as the EXPERT that he is.

    Once this Rupert Mafia Gang Member “PK” Harris (no relation of mine – SIS!) is IN THE BOX, representing this RACIST bank and his “friend” “JR” Johan Rupert etc – as THEIR ‘expert’ –

    You, PK, WILL SEE the “S… HIT THE FAN’ – PLEASE BELIEVE ME PK ! You will SEE it; the–whole-wide-World will SEE it ! To be sure ! We will ALL have to duck to avoid being hit by SO MUCH ‘FLYING S…’ PK. (LOL)

    Just continue to help Emerald to get this Rupert Mafia Gang Member, this “friend” of “JR” Johan Rupert – “PK” Harris (no relation of mine – SIS!) – IN THE BOX. PLEASE PK.

    5.
    You see PK, ‘The Die Is Cast’. This RACIST bank is about to ‘SHOOT IT’S OWN LIGHTS OUT’ – having already shot itself in the one foot, then shot itself in the other foot, by way of it’s Documents Discovered to the Cape Town Equality High Court Judge. Praise the GOOD Lord JESUS.

    This RACIST bank has been FORCED by Emerald to submit it’s Report – as it’s EXPERT EVIDENCE.

    6.
    All that is left is to put “PK” Harris (no relation of mine – SIS!) IN THE BOX.

    This Rupert Mafia Gang Member, this “friend” of “JR” Johan Rupert – this CEO at the outset of the original Fraud and THEFT, after the acquiring of the Low Cost Housing mortgage book by securitasation in 1998/1999 between Saambou and this RACIST bank FNb – this ‘man’ “PK” Harris (no relation of mine – SIS!); this multi-Rand BILLIONAIRE; this Director in FRL and in REMGRO; this Shareholder with a MASSIVE ‘block’ of shares in the Public Companies that own this RACIST bank i. e. FirstRand Limited/FirstRand bank Limited/Fist National bank; REMGRO.

    PUT THIS ‘man’ INTO THE BOX – to explain the Report, as the ‘expert’ CROOK CHEAT and THIEF for this RACIST bank that he is.

    PLEASE PK continue to help Emerald to achieve this.

    “PK” Harris IN THE BOX as the EXPERT CROOK CHEAT and THIEF that he is.

    PK please keep up your Great Reporting on this THEFT by this bank First National bank; by these Public Companies – FirstRand Limited and REMGRO.

    Lord Bless, love Michael (heart).

  4. Emerald and PK,

    What really fascinates me is that the two witnesses of First Rand Finance Company in the matter between Emerald van Zyl and the bank under oath testified that because of the increase in the prime rate to 25% in 1998/1999 the bank had to pay their depositors a higher interest rate. This caused a financial squeeze on the bank financially which led to the increases of interest rates on mortgage loans.

    This is not true as the financial statements for 1999 and 2000 respectively revealed a 34% and 42.2% increase in earnings. If the bank had to increase the interest rate on mortgage loan due to financial problems, why was the interest rate only applicable increased on mortgage loans of low cost housing.

    As stated in the article, Saambou illegally calculated interest in advance. The bank converted to the correct method in September 1999. With this convertion, Saambou lost one month of interest income, estimated at R 110 million. To recover this money, the bank penalised clients of low cost housing by increasing the interest rate on their mortgage loans with an average of 3 percent.

    Lord Bless, love Michael (heart).

  5. i am really disappointed with fnb if the court find them in the wrong.
    and again can it be put in the media like other wrong things or unfair practice done to us blacks – like other insurance companies.

  6. PK,

    Are you and Emerald going to also insist on Criminal Charges being pursued by the South African Police Services ?

    If you are, then please don’t forget the about 31 Police Cases that I have laid. They ALL include this man, this Rupert Mafia Gang Member “PK” Harris AND they include “JR” Johann Rupert; “GT” Ferreira; “LL” Dippenaar’ “Viv” Bartlett and the other Directors of REMGRO, FirstRand Limited, FirstRand bank Limited.

    LET ME KNOW YOUR DECISION PK and Emerald. OK. (LOL).

    Lord Bless, love Michael (heart).

  7. Rex Seemela | May 26, 2017 at 4:50 pm | Reply

    While wars and revolutions have been useful to international bankers in gaining or increasing control over governments, the key to such control has always been control of money. You can control a government if you have it in your debt; a creditor is in a position to demand the privileges of monopoly from the sovereign. Money-seeking governments have granted monopolies in state banking, natural resources, oil concessions and transportation. However, the monopoly which the international financiers most covet is control over a nation’s money

Leave a comment

Your email address will not be published.


*