Asses thewhat is stated hereunder and advise DO I HAVE A CASE 1. In November 2007, I took a second bond on my house to purchase a farm.2. The bank in question failed to observe the National Credit Act and granted me a 100 % loan for R 1,300,0003. I had my own business at the time and had a net income of R 30,000 per month, however the auditor issued a letter stating that my income was R 45000 4. In Repayment amount was around R 24000.00 per month5. The Farm was bought into a property trust and the bank furthered an amount of R 1,100,000 as operating capital with the Farm as collateral and I had to stand personal surety as well, this based on a business plan alone.6. On 09 October 2008, I practically lost my source of income due to a serious problem between me and my erstwhile partner, that resulted therein that I sold my 40 % share in my business 7. During the first quarter of 2010 a writ of execution was granted against me and the Property Trust trust due thereto that we could not make the payments any further.8. The Bank then approached me and said that If I work with them then they will write of the difference of what I owe (that was R 4,000,000 at the time of the auction inclusive of all interests)and what the properties are sold for, Obviously I agreed;9. On 19 October 2010 my house and farm was sold on public auction a. The house valued at R 2,600,000 was sold for R 1,500,000: andb. The Farm valued at R 2,500,00 was sold for R 1,000,00010. In the meantime in March 2010, the bank informed me that the Title deeds are lost and that I was required to sign a Reg 68 application for the lost title deeds, which I refused to do.11. Now the Transferring attorneys require me to sign a Reg 68 application for the lost title deeds, that indicate that the Title deeds are still gone.I am of the view that the bank failed to observe the National Credit act and that I have recourse against themRegardsJohan van Loggerenberg
Province: Eastern Cape
The First Enquiry today
Good day. This is an info request to assist you better. Please continue on this thread.
On whose instruction did the auditor issue the declaration that you earn an amount of R 45 000 per month?
The Auditor was our auditor when I still had my Company, The Bank required a proof of earnings and he provided a letter stating R 45000 per month whereas I earned R 30000 net
The Act says that the Bank can install their own measures etc but, if it is clear that the consumer cannot afford the credit or is likely to fall into financial difficulty if the credit is extended, then a court can decide that the credit was provided recklessly.
The bank will have to get the information from you. The bank is under no obligation to go out of it's way to verify the information, so, if your auditor issues a statement that you earn R 45k, then the bank is under no obligation to scrutinize your financial statements and can take this letter from the auditor as verification of the fact that you provided to them.
So, what I am saying is that, if you, or your agent, gave false or incorrect information to the bank, whether intentionally or not and, on the face of that information, you can afford the credit and the bank then extends the credit to you, there is no case to be made for reckless credit.
If, however, even on the false or incorrect information, it is clear that you still cannot afford the credit, then a case for reckless credit can still be made.
L.LB, Civil and criminal litigation, contracts, labour and family law
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