More about the Monthly Adm Fee:

In June 1990 a Schedule was added to The Usury Act in terms of Section 9 of Act 67 of 1990 to provide for
the admittance of initiation fees and monthly administration fees (Service Fees) on all housing loans
(Section 2(a) and (b) of the Schedule). The allowed monthly administration fee was R5,00 (VAT excluded)

The National Credit Act was promulgated on 1 June 2005 and came into effect on 1 June 2007. The monthly
administration fee under this Act was increased from R 5 to R 50 (Vat excluded )

Soon after the National Credit Act came into effect, Standard Bank increased the monthly administration
fee on all existing mortgage loan agreements that existed prior to the promulgation of the Act from R5 to R50.

On 29 November 2012 the South African : Supreme Court of Appeal in the matter between the National Credit
Regulator (Appellant) v Standard Bank of S.A. Ltd (Respondent) (Case No 231/12) ruled as follows:-

“It is declared that the respondent is not entitled to charge an administration fee on housing loans that existed at

the time the National Credit Act 34 of 2005 came into operation in excess of the fee provided for in paragraph 3(b)(i) of

the Schedule to the Usury Act, Act 73 of 1968 unless and until that fee is amended under the powers conferred

by s105(1) of the National Credit Act".




Shortly after the judgement Standard Bank said in a press release that all Administration Fee overcharges were reversed.



However, statements of Standard Bank client’s I have
 investigagated up to now, revealed the following:-


1) Not all account were corrected. 


2) those account that were corrected, Standard Bank mediately continue to raise this illegal fee