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Thread: Interest on arrears.

  1. #1
    Site Caretaker Dave A's Avatar
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    Interest on arrears.

    An arrear amount has accrued on one of the vehicle finance agreements within our group. Nothing serious. Basically it arises from an interest change calculation that crossed over the payment of an instalment - it is the princely amount of R25.34 and no-one is particularly worried. It will all wash out in the end.

    However, today I noticed something that did irk me about that R25.34 arrears - The arrears interest being charged on it. A whopping R1.21 per month! An effective rate of approximately 60% per annum.

    So naturally (for me anyway) I simply had to call the finance company to express my surprise.

    So I call the Enquiries number and worked my way through the automated selection system. I selected arrear accounts.

    A very pleasant lady answered the phone and I gave her the account number.
    She advised me that everything is in order with the account.
    I drew her attention to the R25.34 arrears amount.
    She assured me that this is no problem.
    I agreed, but pointed out that this paltry sum was attracting interest of R1.21 per month which was a problem - at least in my eyes. I asked how it was calculated.
    She told me it is system generated, so she doesn't know.
    I told her that if she would just tell me the location of the computer, I would happily go and kick an explanation out of it. Alternatively, I offered to ask the computer myself if she happened to know its telephone number.

    I'm assured I'll get a real live human who will call me and explain the basis of this arrears interest calculation.

    So whilst I wait for this call, out of idle curiosity -

    Has anyone else got a trivial arrears amount on a finance agreement? And if you can identify the interest on the arrears amount - what are you being charged?
    The trouble with opportunity is it normally comes dressed up as work.

  2. #2
    Bronze Member Sieg's Avatar
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    Interest on arrears

    Dave


    Can only be Wesbank!


    Sieg

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    Site Caretaker Dave A's Avatar
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    Sieg, you got it in one. My only fixed asset finance with them too!

    I don't have this problem with any of my other financed stuff.
    The trouble with opportunity is it normally comes dressed up as work.

  4. #4
    Site Caretaker Dave A's Avatar
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    An update:

    Not a single call back from Wesbank so far. I've had to do all the calling. Yesterday I got passed around 4 departments.

    I've yet to get an explanation as to how they arrived at a monthly interest charge of R1.21 on R25.34, but along the way I was told they may be writing it off. Exactly what they will be writing off is not clear as yet. But I'm assured they'll get back to me.

    We'll see.
    Last edited by Dave A; 01-Feb-08 at 10:55 AM.
    The trouble with opportunity is it normally comes dressed up as work.

  5. #5
    Bronze Member Sieg's Avatar
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    Interest on arrears

    Dave

    I can give you the number of the one person at Wesbank who will sort this out for you.

    Sieg

  6. #6
    Site Caretaker Dave A's Avatar
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    Thanks Sieg. If it doesn't come right this time, I might just drop you a PM asking for it. As much for getting clarification as anything else. It's such a small matter, but if they're doing this to everyone, I'm sure it adds up to a fair amount of money.

    I'm tempted to just drop R50 into the account anyway and test what I get as an interest saving for being in advance.
    The trouble with opportunity is it normally comes dressed up as work.

  7. #7
    Email problem RKS Computer Solutions's Avatar
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    This should serve as a reminder to everyone to frequently check your statemens so that you can stop any problems before they become major!

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    Hi Dave,

    Have you tried posting a complaint on hellopeter.com?

    I had hassles with Wesbank about a year ago, they took 5 instalments from my account in 1 month. Posted on hellopeter and got the issue resolved within 2 days.

  9. #9
    Site Caretaker Dave A's Avatar
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    I'll wait and see what has happened when I get my next statement

    Based on Sieg's comment, the problem seems to be a system issue though. Rectifying individual accounts is one thing - getting Wesbank to fix their systems is another.
    The trouble with opportunity is it normally comes dressed up as work.

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