Calls for a commission of inquiry into alleged FNB discrimination

An appeal is being made to President Cyril Ramaphosa to establish a commission of inquiry into claims of discrimination against black homeowners by First National Bank (FNB) and other banks.

This week Special Assignment spoke to black homeowners who claimed that they were charged higher interest rates on home loans compared to their white counterparts.

Corroborating these claims, Financial Consultant Emerald van Zyl says the cover-up of discrimination is one of the biggest scandals in the history of SA banking and has spanned over a period of ten years.

He says the Reserve Bank, Human Rights Commission, Banking Council & the Standing Committee on Finance are aware of the issue but failed to act.

He has also accused the African National Congress, Economic Freedom Fighters and Democratic Alliance of inaction, saying banks are their financial support.

Van Zyl says a database leaked to him in 2010 revealed how FNB collected 3.25 percent more in mortgage loans from low-cost housing clients.

The low-cost housing book consisted of 23 300 clients and FNB argued that all the people in that group were not all black, I then obtained the services of Professor Cornie Groenewald and he found that all the clients are black, government employees, they receive a subsidy and salaries must be below a certain threshold.

Emerald van Zyl, Private Financial Consultant

On Sunday night the Ombudsman for banking services, denied any sort of discrimination while I informed him about 2 years ago about this. Nothing is happening at government level, now the Equality Court has been going on for six years in which FNB has tried every single trick to delay the matter. They got a cost order against them for not delivering documentation that we asked for.

Emerald van Zyl, Private Financial Consultant

One can see the clients [who appeared on Special Assignment] are all charged in excess of R 130 000.

Emerald van Zyl, Private Financial Consultant

Black citizens are now requesting President Cyril Ramaphosa to appoint a commission of inquiry into discrimination by banks in South Africa.

Emerald van Zyl, Private Financial Consultant

Some of them are paying 27% on their motor vehicles. Some of them are paying 7 or 8% more than what white people are paying for.

Emerald van Zyl, Private Financial Consultant

FNB bought Saambou’s home loan book when the latter collapsed in 2002. Although FNB obtained the mortgage book of Saambou for R1 after the bank collapsed on 9 February 2002, it obtained the Low Cost Housing mortgage book by securitisation in 1998/1999.

CEO of FNB Home Finance, Lee Mhlongo says van Zyl's allegations are reckless and baseless and that FNB rectified Saambou's operating model by 2006.

He says a lot of the issues mentioned were tested in the North Gauteng High Court in 2013 and were found to be baseless.

The accusations around racial discrimination are hurtful and baseless.

Lee Mhlongo, FNB Home Finance - CEO

Where does the FNB Saambou relationship begin, that begins in 2002, anything that precedes that is a matter of a Saambou operating model, not an FNB operating model. Secondly, there was an interest recalculation implemented in 2006, this recalculation was something clearly understood and known about as part of that acquisition. That was effected proactively and an amount of R 154 million was paid to these Saambou customers to rectify issues that preceded...

Lee Mhlongo, FNB Home Finance - CEO

The policy that Saambou carried out prior to that 1998 period is an issue that relates to how Saambou carried out its affairs and the court found that the allegations put forward were not congruent with the statements that Mr van Zyl is making.

Lee Mhlongo, FNB Home Finance - CEO

Within an FNB context, we have a dedicated business unit whose sole focus was to find affordable solutions for customers in the affordable housing space. We send customers monthly statements, if interest rates change we send out communication to those customers. We run a comprehensive borrowers education tool to empower customers to be fully aware of what their rights are.

Lee Mhlongo, FNB Home Finance - CEO

Click on the link below to hear the full story...


This article first appeared on 702 : Calls for a commission of inquiry into alleged FNB discrimination


Recommended

by NEWSROOM AI
Read More
More than five billion emojis are sent daily on Facebook messenger alone

More than five billion emojis are sent daily on Facebook messenger alone

AppInstitute head of marketing Izaak Crook explains the history of the emoji.

702 Unplugged exclusive: Loyiso Gijana delivers moving song to his grandfather

702 Unplugged exclusive: Loyiso Gijana delivers moving song to his grandfather

Idols SA contestant says his journey is about emotions, telling a story and provoking a feeling in someone.

Art scratches on a possibility - Florence Masebe on playing Madam President

Art scratches on a possibility - Florence Masebe on playing Madam President

The actress sat down with Azania Mosaka about the role of leadership and how she has personified her new TV role.

Grief has taught me so much about myself - Letshego Zulu

Grief has taught me so much about myself - Letshego Zulu

The widow of race driver Gugu Zulu chats to Azania Mosaka about her book 'I Choose to Live: Life after Losing Gugu'

[LISTEN] The effects of normalised crime on children

[LISTEN] The effects of normalised crime on children

Boys & Girls Town CEO Lee Loynes says children who experience violence have fewer neuro-connections in their brains.

[LISTEN] How to avoid falling victim to job scams

[LISTEN] How to avoid falling victim to job scams

Africa Check's Caley Clifford and Naphtali Khumalo share five red flags to watch out for.

Popular articles
Outrage after pastor tells students gay people are 'as bad as Hitler'

Outrage after pastor tells students gay people are 'as bad as Hitler'

Students at De Kuilen High are being offered counselling after being told by pastor that all gay pupils are going to hell.

47% probability of the rand crashing in next 12 months - Rand Merchant Bank

47% probability of the rand crashing in next 12 months - Rand Merchant Bank

The writing is probably on the wall for the resurgent rand. Bruce Whitfield interviews John Cairns, a Strategist at RMB.

'Old Mutual claimed they were the cheapest. They were the most expensive!'

'Old Mutual claimed they were the cheapest. They were the most expensive!'

Personal Finance's retired founding editor Bruce Cameron on his attitude toward money (hopes and fears, successes and failures...)

'It's about time too!' DJ Fresh on his new 947 gig  #FreshOn947

'It's about time too!' DJ Fresh on his new 947 gig #FreshOn947

The news that DJ Fresh would be joining 947 was dominating on social media on Monday with the hashtag #Freshon97

Vaginal ring effective in HIV prevention, study shows

Vaginal ring effective in HIV prevention, study shows

The ring offers an alternative to taking an oral pill every day and needs replacing just once a month.

Brand new business hub to help startups get off the ground  - CPT

Brand new business hub to help startups get off the ground - CPT

It's being dubbed a 'one-stop-shop' for entrepreneurs and startups looking for opportunities in the Mother City.

'A lot of people may have wanted him dead.'  - Who killed Mark Batchelor?

'A lot of people may have wanted him dead.' - Who killed Mark Batchelor?

A Sunday newspaper report has suggested the soccer ace's death may have been linked to a missing stash of cocaine.

Paying off your credit card every month to avoid interest? The banks are sneaky…

Paying off your credit card every month to avoid interest? The banks are sneaky…

Consumer journalist Wendy Knowler warns prudent credit card holders to keep tabs on their banks. In this case, it’s FNB.