Wesbank Early Settlement Penalty

[Dolby]

Anyone have experience with this?

I was told if I give notice, it's OK?

Also, is early anytime before the period - or something like 1st 12 months?

 

[Sinbad]

Anyone have experience with this?

I was told if I give notice, it's OK?

Also, is early anytime before the period - or something like 1st 12 months?

On any "large" credit agreement (>R250k), you have to give 3 months notice, else you pay 3 months worth of interest as an early settlement penalty. Early being before the end of the contract.

 

[Pho3nix]

On any "large" credit agreement (>R250k), you have to give 3 months notice, else you pay 3 months worth of interest as an early settlement penalty. Early being before the end of the contract.

If the total purchase price is eg.R280k and you pay R35k as a deposit do you still need to give 3 months notice?

 

[Sinbad]

If the total purchase price is eg.R280k and you pay R35k as a deposit do you still need to give 3 months notice?

I think so, yes. The deposit is part of the agreement.

 

[SauRoNZA]

Talk to Wesbank, they have the answers...believe it or not.


I do recall there being something about this kind of thing being illegal now, but I might be wrong.

 

[Joker]

Generating a settlement quotation for my car on wesbanks site mentions no early settlement penalty? (original purchase cost was > 300k)

 

[XennoX]

Settlement penalties are related to the remaining balance of the loan. If the balance of your loan is > R250k, you need to give 90 days notice. If it is less than R250k, then no penalties can be applied. This was from a consultant at ABSA vehicle finance when I did the financing for my vehicle.

 

[Hamster]

I settled my Wesbank car finance/loan early just over a year ago. The outstanding amount was less than R250k. No penalties.

 

[Sinbad]

Generating a settlement quotation for my car on wesbanks site mentions no early settlement penalty? (original purchase cost was > 300k)

They don't list it, they just increase the settlement amount by the penalty amount.

Settlement penalties are related to the remaining balance of the loan. If the balance of your loan is > R250k, you need to give 90 days notice. If it is less than R250k, then no penalties can be applied. This was from a consultant at ABSA vehicle finance when I did the financing for my vehicle.

Nope. It's based on the nature of your contract, not the balance.

from the NCR's website:
No penalty fee is payable for the early settlement of a small or
intermediate agreement. If the consumer wants to terminate a large
credit agreement i.e. a credit agreement which is greater than R250 000
(two hundred and fifty thousand rand) or a mortgage agreement, the
settlement amount may include an early settlement charge which is not
allowed to be more than three months interest, and less if the consumer
provides notice of his / her intention to settle early. In the case of a notice
given by the consumer it will reduce the three month interest early
settlement charge by the notice period.

 

[Sinbad]

I settled my Wesbank car finance/loan early just over a year ago. The outstanding amount was less than R250k. No penalties.

Did you compare the settlement amount quoted to the outstanding capital balance on the amortisation table? There is NO indication of penalties on a settlement quote.

 

[Dolby]

Thanks Sinbad

 

[bwana]

Anyone have experience with this?

I was told if I give notice, it's OK?

Also, is early anytime before the period - or something like 1st 12 months?

Call them and ask - it's not particularly difficult.

 

[rodga]

You can get a settlement quote online with Wesbank

 

[Hamster]

Did you compare the settlement amount quoted to the outstanding capital balance on the amortisation table? There is NO indication of penalties on a settlement quote.

It roughly equaled the outstanding amount that was showing on my internet banking IIRC.

 

[HavocXphere]

So just give notice immediately? Or is there a penalty for false/expired notice.

Sinbad - yes technically it's the cap balance... Plus whatever dodgy fees/penalties they might levy as per above

 

[Dolby]

Call them and ask - it's not particularly difficult.

I'm sure you are aware that call center agents are often wrong or clueless. They can tell *what* the system says but not much else. As Sinbad says, it doesn't state penalty on the quote - so they're not going to understand.

Whereas online there is a good chance that someone has experienced and gone through the issues already and can assist. That's the point of a forum ; experience

 

[bwana]

I'm sure you are aware that call center agents are often wrong or clueless. They can tell *what* the system says but not much else. As Sinbad says, it doesn't state penalty on the quote - so they're not going to understand.

Whereas online there is a good chance that someone has experienced and gone through the issues already and can assist. That's the point of a forum ; experience

You call their Settlement Services department - it's what they do.

 

[Fazda]

There is no penalty, and hasn't been one for quite a few years now.

 

[Dolby]

There is no penalty, and hasn't been one for quite a few years now.

There really is.

Confirmed with them too. My settlement is R10,000 for than my balance and when I queried, I was told about it

 

[supersunbird]

There really is.

Confirmed with them too. My settlement is R10,000 for than my balance and when I queried, I was told about it

Would make sense if your interest portion of the payments is around R3333pm...