Relief from the banks?

Mars

Honorary Master
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Feb 4, 2006
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10,777
I applied for Covid Relief from FNB and they came back with an offer. It seems a little.. crappy.

I was hoping that, for the lock down period, they would not charge me bank fee's, extend my home loan and not charge me interest on my overdraft and credit cards. I didn't take a salary last month and I cant take one this month either so the interest on my overdraft and credit card comes to about R2k. Instead they are charging me all interest as normal and giving me a loan that is meant to pay that interest along with my debit orders. Since I avoid debit orders wherever I can I cant use that money to pay things like my cellphone, my rates. The loan is at a lower interest rate and I have until September before I have to start paying but I am probably going to be moving to another bank when all this is over.

Essentially, they are forcing me to go deeper into my credit card and overdraft, charging me interest at the full rates. Then they "pay" that interest out of the loan they gave me and charge me further interest on that amount.

For the record I have a good credit rating and I have not missed a single payment on anything for 15+ years.

I'm not in a position to say no, otherwise I would tell them to shove it. Its just such a shıtty thing to do.
 

LCBXX

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Apr 11, 2006
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Yup. You're getting "relief" for which you will eventually pay, plus interest.

What is find strange is that the EFF have a campaign for 2020, where they going to take on the "racist financial services sector". Yet they're silent on these relief-but-not-really-relief plans from the banks.
 

Jabulani22

Executive Member
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Feb 11, 2017
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5,277
Yup banks are profiteering off of this , all repayments should be subject to a freeze with no penalty .
With some conditions like proof of lack of earnings , banks are flying under the radar when they should be leading the charge.
 

alphabyte

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Joined
Jun 17, 2008
Messages
495
The banks may defer your obligation to pay on a loan/overdraft/credit card for a month or three, but you will still be liable for the interest that accumulates.
Just like these new car schemes where you only begin your payments 3 or 6 months after signing, but you still get hit with the mounting interest.
 

NarrowBandFtw

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Feb 1, 2008
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21,994
being "loyal" to a bank means absolutely nothing
too true, this is why at one point I had car financing with SBSA, home loan with Nedbank, current account with Capitec, credit card with Virgin Money and unit trust with Allan Gray

go where the best deal is, fahk loyalty, and the best deal is often not with your current bank (regardless of who you bank with)
 

TheChamp

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Feb 26, 2011
Messages
42,029
Yup. You're getting "relief" for which you will eventually pay, plus interest.

What is find strange is that the EFF have a campaign for 2020, where they going to take on the "racist financial services sector". Yet they're silent on these relief-but-not-really-relief plans from the banks.
Just like any other political party they are a bunch of hypocrites, don't expect any consistency.

If you want some action from them get Jamnadas to make a public statement praising the banks for their relief efforts.
 

Mars

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Feb 4, 2006
Messages
10,777
Banks are a business, they must be prudent or they will have solvency issues if they start to give away free stuff.
Oh, so I have to incur in excess of R300000 in losses by being forced to close during the lockdown but they should incur none? What about my fsking solvency issues? Why should they still be able to make profit out of me while I am prevented from making money?
 

LCBXX

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Apr 11, 2006
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Oh, so I have to incur in excess of R300000 in losses by being forced to close during the lockdown but they should incur none? What about my fsking solvency issues? Why should they still be able to make profit out of me while I am prevented from making money?
Your losses saved lives.
 

JayM

Expert Member
Joined
Oct 30, 2005
Messages
3,318
I applied for Covid Relief from FNB and they came back with an offer. It seems a little.. crappy.

I was hoping that, for the lock down period, they would not charge me bank fee's, extend my home loan and not charge me interest on my overdraft and credit cards. I didn't take a salary last month and I cant take one this month either so the interest on my overdraft and credit card comes to about R2k. Instead they are charging me all interest as normal and giving me a loan that is meant to pay that interest along with my debit orders. Since I avoid debit orders wherever I can I cant use that money to pay things like my cellphone, my rates. The loan is at a lower interest rate and I have until September before I have to start paying but I am probably going to be moving to another bank when all this is over.

Essentially, they are forcing me to go deeper into my credit card and overdraft, charging me interest at the full rates. Then they "pay" that interest out of the loan they gave me and charge me further interest on that amount.

For the record I have a good credit rating and I have not missed a single payment on anything for 15+ years.

I'm not in a position to say no, otherwise I would tell them to shove it. Its just such a shıtty thing to do.

When the bank lends you money, there is a cost for them for those funds (payable either to other depositors, or to the reserve bank). If the banks stopped charging interest but still have to pay it to depositors and the reserve bank, the banks would go out of business very quickly. If you think you're in poo now, wait until your bank goes under.

Also to consider - if these payment holidays don't incur interest, there is no incentive for people who can still pay, to actually do so. I'm sure you can see the problem with this.
 

chrisc

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Aug 14, 2008
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9,769
They will trot out the same excuses that they are beholden to shareholders
 

BBSA

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Jul 11, 2005
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Oh, so I have to incur in excess of R300000 in losses by being forced to close during the lockdown but they should incur none? What about my fsking solvency issues? Why should they still be able to make profit out of me while I am prevented from making money?
Don't worry, they will also have big losses as many people will not be able to pay their debts.

If you want charity go to a no profit organisation.
 
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LCBXX

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Apr 11, 2006
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Of course. That's not the point. The point is why should I carry ALL the loss while the bank profits out of this situation?
68 of OUR people have died from COVID-19 complications and ALL you can complain about is profit. You know, you're the WORST kind of person.
 

Mars

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Feb 4, 2006
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10,777
Doesn't worry, they will also have big losses as many people will not be able to pay their debts.

If you want charity go to a no profit organisation.
Oh shame. They will lose a little because some people lost everything.
I'm paying my staff out of my overdraft to make sure they're looked after. I've taken money from my credit card and bought groceries for multiple families that otherwise would have none.
I'm taking my part on the chin.
They're not coming to the party.

When they say we are in this together they actualy mean "You are in this together, we will still make a profit"

If they had just given me a straight loan on those terms they would still make money out of me without charging interest on my interest.
 

BBSA

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Oh shame. They will lose a little because some people lost everything.
I'm paying my staff out of my overdraft to make sure they're looked after. I've taken money from my credit card and bought groceries for multiple families that otherwise would have none.
I'm taking my part on the chin.
They're not coming to the party.

When they say we are in this together they actualy mean "You are in this together, we will still make a profit"

If they had just given me a straight loan on those terms they would still make money out of me without charging interest on my interest.
As I said, go and ask for charity somewhere else.
 

Mars

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Feb 4, 2006
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Yep. If I said those words at any time during this crisis the social backlash would be swift.
 
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