Articles

 

Wesbank did discriminate with vehicle finance account

 

The whistle blower

 

a Former manager at Wesbank blew the whistle by phoning Emerald van Zyl and informing him that Wesbank is discriminating  against black clients on their vehicle Finance account with interest rates. He informed him that black vehicle owners are charged an interest rate between 17% and 22% on their vehicle account .Whites were charged  between 10% and 12.5%.The  prime rate is 10.25%.

 

the tweet:-

 

On    11 November 2019  Emerald tweeted as follows to obtain agreements of black vehicle finance accounts:

 

“All black client's who have a vehicle finance account with Wesbank within the past 5 years at an interest rate higher than 17% plse email me a copy of the contract . I need this information to draft my report to the Human Rights Commission related to discrimination”.

 

Media

 

Here is part of an article published in the Citizen dated 12 November 2019 under the heading “Wesbank accused of charging its black clients more on interest”

 

A financial investigating consultant’s appeal for people to submit their vehicle financing contracts has highlighted alleged racial discrimination.

In a series of tweets, financial investigating consultant Emerald van Zyl appears to have opened another can of worms after calling on South Africans to submit to him their motor vehicle finance and bond contracts with WesBank in an attempt to prove alleged discrimination against its black clients.

Van Zyl has previously exposed several irregularities that some financial institutions were allegedly using to rip off their clients.

Van Zyl has now appealed on Twitter for the country to forward him their contracts with Wesbank as he claims there is reasonable proof that the bank is still charging its black clients hiked interest rates and that he wants to draft a report for the Human Rights Commission revealing this.

All black client's who have a vehicle finance account
with Wesbank within the past 5 years at an interest rate higher than 17% plse email me a copy of the contract . I need this information to draft my report to the Human Rights Commission related to discrimination

 

the response:-

 

 

The response was indeed very good and revealed that interest rates up to 22% were charged on the vehicle finance accounts of blacks. A number

of clients said that when they queried the high interest rate, they were informed that it was because of risk (nogal) 

Some contacts were submitted by white clients and the interest rates varies between 10% and 12.5%.This information was submitted to the Human Rights commission.

 

 

Wesbank’s response:-

 

Wesbank was invited to take part in various radio interviews but refused to. They later released a statement saying that the interest rate charged on vehicle finance accounts were determined by credibility and affordability. With this comment Wesbank basically admit that the bank did in matter of fact discriminated and here is the reasons:-

 

 

  1. The Law determine that the monthly instalments on a vehicle finance account must not exceed 30% of the clients monthly income. Therefor all vehicle finance accounts (black and white) are affordable.

  2. Nobody, black or white will obtain a vehicle finance if he/she do not have a 100% clear credit record. Therefore, everybody with a vehicle finance account is creditworthy.

     

     

    The effect of discrimination

     

     

    Here is the effect on a client who purchased a vehicle of R 252 000 at an interest rate of 19.74 % on a term of 72 months:- Total amount of interest at 19.74%.....R 186 000 Total amount at a rate of 12.5%( White clients rate) ….

    R 118 000 Variance R 68 000

     

     

    South African Human Rights Commission

     

     

    The SAHRC is now actively  involved with discrimination by banks with interest rates on black clients mortgage loans and vehicle finance accounts.

    If found that a bank discriminated, the bank can get a fine and all the effected accounts must be rectified. Recently the Bank of America was fined 335 million dollars related to discrimination against 200 000 qualified African –Americans and hispatic borrowers who were charged with higher interest charges “Solely because of their race or nation origin”.

     

     

    Group action:-

     

    It was suggested and decided that the most economical way to claim back any  overcharges it by means of a group action.

    To become part of the group  action Emerald will need the following:-

     

     

  3. A Power of Attorney to act on your behalf

  4. A copy of the agreement/ contract

  5.  Payment History from inception

  6. Settlement figure

  7. recalculation of the finance account. If you do not have anybody

              to do a recalc, plse phone Emerald at 0822911333

     

     

     

    Plse forward documentation to This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.