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Thread: Credit Card and Overdraft

  1. #11
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    Definitely the one with the 8 km per liter because it just sounds like it has plenty vooooma. That's what life is all about the pleasures in the journey thru life😜
    Comments are based on opinion...not always facts....that's why people use an alias.

  2. #12
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    Here's an interesting one...

    I had an overdraft facility with Nedbank for many years. The last time my SME manager phoned me asking if I needed to up my facility from 80K to 100K because I was always working just within my limit. I jumped at this opportunity as no one has ever made it this easy! Little did I know that she eventually took an opening in the corporate side of Nedbank and I was left with a new SME manager...

    This is where everything fell apart...

    In fact in some way it was my fault too...

    My previous SME manager faithfully asked each year for my Financials to keep the facility. This spoiled me so much that I didn't even think of this factor a year later when my financials were due and for some reason also didn't get them done by my accountant. The second year went by and Financials were the further-est thing from my mind. Then out of the blue the credit department at Nedbank phoned my wife (who was just unlucky enough to be at home at the time of the call) and stated that they were recalling my overdraft and that the account would be frozen the same day!

    When I was informed of this by my wife I immediately phoned them and argued that they could not do this to me as there were customers deposits for jobs that had to be done sitting in the account and how can they do this when I'm not even over my limit but was rather about 15K below my limit of 100K also I thought we had a very good relationship and I was a very good customer after all these years without incident?

    To cut a long story short, there was nothing I could do as I was currently going through a cash flow crisis and we were also under debt revue at the time and everything with Nedbank was behind... my homeloan, my credit card and now my overdraft was in the spot light because there were no Financials submitted to the branch for 2 years running.

    I phoned my accountant and asked what she would charge to get these financials up to date and she insisted on R8K... well obviuosly I was now in a catch twenty-two scenario so I did the only thing I could do at the time (also due to me being very angry at Nedbank) and that was to open another business account at FNB.

    I informed all my clients of my new account details and carried on trading with the full intention of paying back the overdraft at Nedbank with an amount I could afford every month (the monthly interest on the overdraft p.m was about R2500. Due to limited cash flow and slow business at the time i fell behind with regular payments to the overdraft facility and was not really even affording the interest each month and was eventually handed over to attorneys.

    I then commenced again paying what I could which was around R1000 a month and eventually couldn't keep this up, so made an appointment to go and see them. I explained the problem about the financials to them but this really didn't help much. They wanted me to up the payments to R10K for 9 months and told them that there was no way I could afford this (keep in mind that my home was surety for this overdraft facility and when I bought my home we put in R250K so there was no way that I was going to loose this too).
    So in other words, liquidation or sequestration was not in my best interest!

    I then said that I will do my best to at least pay R2000 per month and the attorney or acting attorney said that this would be better. These payments went on as best as I could afford them and yes there were one or two months that I just couldn't pay this but always caught up where I could. (Due to the account being frozen and handed over to the attorneys, there was no more interest payable...only the capital)

    The latest now is I skipped end of august payment and September but stated on an email in beginning of October month that I had paid August R2000 payment and will be paying another R2000 for September before October ends... This was answered with an email back from the attorneys office that reads...


    "Dear Gary

    Kindly be advised that no payment was made in September’14. Furthermore the amount that you are paying is not sufficient.

    Our client requires an amount of R5800.00 over 12 months.
    Should you be unable to pay this amount, we will have no alternative but to proceed with legal action."


    I was very surprised at this as I did state in my previous email to them that I would be catching up with an additional payment before October ends for September...which I did.

    What I would like to know is...is this just another scare tactic for me to pay more? Or is this comment a legal and legitimate claim that they can just decide for me what amount I have to pay back per month without looking at my affordability or current statements to prove the affordability?
    The fact is that Nedbank has put a restriction on the account i.e money can be eft'd or deposited to the account but that's it. I cannot view any statements on line etc. The attorneys also told me that there was no more interest on top of the capital amount which is a bonus yes... But this really doesn't help if you cannot even afford the said payment of R5800/month???

    Really starting to panic now as I definitely cannot afford this on top of my current monthly exposure...

    I have since then asked the Attorneys if they will at least accept R2900 over 24 months?
    No answer as yet....

    Do you think it is within my right to ask this and must they accept my offer? Or not....would they then sell my house? (and this won't help me as I will loose everything because I run my business from home....

    Very traumatic times, I must say!

    Tnx

  3. #13
    Bronze Member Alice Rain's Avatar
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    You certainly have my sympathy. My credit card is was only R12 000 and my overdraft R8 100, I cancelled the credit card but have not been able make the 'arranged' payments and emailed them to which I received no response. I kept getting these sms's with a number to phone and eventually they phoned me and I told them it doesn't help to send me an automated text message with a number when I don't have funds to phone the number and that I would start paying as soon as I have the funds. They informed me that an additional R200 will be added to the account in interest so who knows how much I'll end up owning them! They'll be phoning me everyday, so I will just not answer the call because it's stressful and I'm trying to get the work out. Now I've just received a text message from them that needs to be downloaded! Why can they not at least give someone a 6 month window to get themselves together before turning into rotweilers! And now there's no funds in my cheque account either so the overdraft's also going into the red and frankly I need to focus on work and will not worry about them.

    I wish you all the best and hope you come right one way or another.

  4. #14
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Gfacius View Post
    (Due to the account being frozen and handed over to the attorneys, there was no more interest payable...only the capital)
    I hope you've got that in writing. Maybe times have changed, but when I had an OD put onto managed accounts way back when, the account fees stopped (as well as all statements, access etc. as you mention), but the interest clock kept running.

    Is the business incorporated, or a sole proprietor?

  5. #15
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    Hi Dave, the company is a CC...registered in 2006.

    I've had no answer yet back from the attorneys about the amount they wanted. I guess they are stumped by me querying "affordability", who knows? Maybe I'll get the legal action by mail or they waiting to see if I will pay what I asked which was R2900 for 24 months.

  6. #16
    Diamond Member Justloadit's Avatar
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    I had a similar situation recently, and I simply wrote a letter to the lawyer concerned, and simply stated, that I will be paying Rxxx.xx for 24 months, and the first installment will take place on 1st of each month into their trust account, using the respective reference number provided. To date I have not heard anything from them, and every month my payment is made. In fact I have set up an automatic payment every month for the respective number of payments via my FNB online banking.

    Every month I make a print out of the EFT payment, and place it in my file and watch as my balance reduces every month.

    What is important is to keep to your word, if you miss a payment, then the whole situation changes.
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  7. #17
    Bronze Member Alice Rain's Avatar
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    Can someone please tell me how I go about declaring myself insolvent?

  8. #18
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Gfacius View Post
    Hi Dave, the company is a CC...registered in 2006.
    Fair chance it was your debt review that actually sparked the OD facility withdrawal, I reckon.

    Quote Originally Posted by Alice Rain View Post
    Can someone please tell me how I go about declaring myself insolvent?
    Alice, you probably should have a look at this thread on sequestration.

  9. #19
    Bronze Member Alice Rain's Avatar
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    I fully understand why people don't settle their credit card debt! If Standard Bank don't stop harrassing me I will not pay any further funds towards my outstanding account. Every single day some desperate person phones me from the bank and I have to repeat all the information over and over and over again. I'm still getting letters and whatever you call them messages that I cannot open on my cheap phone to say I must sort my account out. WHY DON'T THEY SORT OUT THEIR DAMM SYSTEMS and check to see if any payments have been made before wasting money on postage, paper and stupid bloody sms's and things.

    Have a great weekend. Been so busy working have not had time to go online, sorry!

  10. #20
    Diamond Member wynn's Avatar
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    This is why it pays to have a backup account at a different bank, if you do get into a little financial wobbly and the bank gets snarkie and freezes your account, just move all deposits to the other bank so that you can keep on trading until the first bank is happy again.
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