Deposits = Cheap financing

K

kaspaas

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I read that Neotel requires steep deposits inmany cases.

It has been stated that they are targetting 60 000 client soon.

If 50% of them are required to pay R1000 deposit, it is worth R30 million of free finance. Not bad at current interest rates.
 
Isn't it requered by law that any deposit thats held over a long period should be invested at current interest rates ?
 
As far as I know, at the end of the contract term you get the deposit back - nothing about getting any interest on the amount held as deposit.

B.
 
Well the deposit seems only for people with (really) risky credit-records. So kaspaas, unless Neotel is requiring a deposit from you and 50% of your friends, don't make assumptions here about the volumes.

I applied to Neotel on Monday night (online), got my application approved Tuesday morning by 10am and confirmed that I do not pay a deposit. I'm going for the Neteol Prime 2.5G package (R399). Perhaps the fact that I've always kept my credit records clean has helped ???
 
I like the way people who don't have to pay deposits make assumptions here that it has something to do with a dirty credit record.
 
B2048 said:
I like the way people who don't have to pay deposits make assumptions here that it has something to do with a dirty credit record.
Click to expand...

I like the way people who do have to pay deposits make assumptions here that it has something to do with Neotel trying to drum up cheap financing :D:p
 
ShaunSA said:
I like the way people who do have to pay deposits make assumptions here that it has something to do with Neotel trying to drum up cheap financing :D:p
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Errmmm... I didn't make that assumption. I like the way people assume that people who have to pay deposits assume that it's because Neotel is trying to drum up cheap financing :D

Oh yes, I suppose that plasticky Neotel device must be *REALLY* expensive.

Oh, and I don't live at home with Mommy & Daddy.
 
Interesting assumptions you all make...but if you refer to the recently introduced National Credit act, you will know that by law any company offering contracts have to vett you and offer the customer some sort of protection. In addition, the company offering the contract protects itself and prevents from getting into legal trouble with the Credit REgulator for wreckless lending...

Read up, know the facts before making assumptions...and deposits are totally refundable providing you conduct your account in a sane manner!

The way credit works is quite complicated...there are about 300 factors that has to be considered when you apply for a contract / credit which all contribute to the qualifying score. This score for any credit grantor is determined by a combination of your history and the rules of the credit grantor.

So if you conduct your affairs well and you bank @ the right bank, earn the right salary etc. - you qualify without a hitch...but if it is otherwise then you maybe required to pay a deposit!
 
CriticalConsumer said:
Interesting assumptions you all make...but if you refer to the recently introduced National Credit act, you will know that by law any company offering contracts have to vett you and offer the customer some sort of protection. In addition, the company offering the contract protects itself and prevents from getting into legal trouble with the Credit REgulator for wreckless lending...

Read up, know the facts before making assumptions...and deposits are totally refundable providing you conduct your account in a sane manner!

The way credit works is quite complicated...there are about 300 factors that has to be considered when you apply for a contract / credit which all contribute to the qualifying score. This score for any credit grantor is determined by a combination of your history and the rules of the credit grantor.

So if you conduct your affairs well and you bank @ the right bank, earn the right salary etc. - you qualify without a hitch...but if it is otherwise then you maybe required to pay a deposit!
Click to expand...

+1 Well put CriticalConsumer :)
 
Thanks guys - just pee's me off when people don't take interest in why things go wrong instead of complaining and getting it fixed!
 
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