Mr. S. Michaels of Mitchell Plain is one of the many black FNB/Saambou Low Cost Housing Clients  who is now referring the discrimination with interest rates on his mortgage loan to the Human Rights Commissiont.



Michaels registered a R 64 000 mortgage loan with Saambou in 1996 with an agreed interest rate of the Basis Rate from time to time.


On the following dates the Basis Rate were decreased.  High Cost Housing mortgage loans were accordingly decreased. Mr. Michael as all other clients  of Low Cost Housing did not received the benefit of these decreases .



                1 February 1999…………      1%


                1 February 2000…………       1%


               18 October 2000…………      1%              


              1 July 2001……………….       .75%


              1 October 20001………….       .25%


              1 November 2001 ………..       .5%


When Saambou collapsed on 9  February 2002, he was paying 4.5% more interest on his housing loan due to  unfair discrimination and the following are the effects of the discrimination.



          1.  On 1 November 2008 his housing loan with a statement balance of R 77 000 went into credit

               i.e. his mortgage loan was paid up  and the bank should have  returned his Title Deed .


         2. A Mora interest re-calculation from 3 November 2008 until 1 September 2017 on the further

             payments and authorized debits at  the prescribed rate from time to time, the bank owes him an

             amount of R 156 620.12, and his Title Deed.



Like many other FNB/Saambou Low Cost Housing clients, he almost lost his house in sale of execution because he could not afford the inflated interest rates which increased his monthly instalments with approximately 35%.


Recent Investigations:-


On 50 FNB/Saambou mortgage loans that were recently re-calculated, the average overcharges per mortgage loan was R120 000. This amounts to a total of R 6 million. There are 23 000 affected clients, which means the total amount due by FNB to these client could amount to R 2.7 billion. This excludes damages claims of hundreds of Low Cost Housing clients who lost their homes in sale in execution due to this illegal and unconstitutional practice of FNB to maximize profitability.


How is responsible to pay:-


FNB obtained the Saambou Low Cost Housing book by securitization in 1998/1999 . They were therefore the proud owners of the Saambou Low Cost Housing book when the discrimination occurred.