On 7 May 2007, the client entered into a loan agreement with Standard Bank for the amount of R609,879.65 at an interest rate of prime minus 1%.
At that time, Standard Bank had reported a loss of R1 billion. An article published by Media24 Business on 19 March 2017, titled “Winning Women: Banking on Home Loans,” reported that Standard Bank had lost approximately R1 billion on its mortgage loan book in 2008. Following these losses, Ms Funeka Montjane was appointed as Financial Director under Mr Tshabalala. According to the article, she introduced what were described as “unconventional methods” in an attempt to prevent further financial losses within the mortgage division.
These so-called unconventional methods were allegedly implemented from 1 June 2009 without the consent or knowledge of clients. They reportedly included:
On 17 March 2009, the client states she became affected by these “unconventional methods” when her interest rate was increased from prime minus 1% to prime, without her knowledge or consent.
In a letter dated 14 January 2026, Emerald van Zyl requested Ms Naomi Herman of Standard Bank to provide reasons for the increase in the client’s interest rate. On 28 January 2026, Ms Herman responded as follows:
“Dear Emerald
We refer to your letter dated 14 January 2026.
The client requested the Bank to restructure the home loan account in March 2009, and such restructure was approved subject to the concession rate being removed. There were two restructures made on the home loan account in March 2009 at the client’s request. The account was restructured twice in March 2009 to accommodate the client’s request so that she could afford the monthly instalments. The client enjoyed the benefit of the restructure and was able to repay the instalments, avoiding legal collections. The client received rate change letters and statements since then which confirmed the interest rate on the home loan account. Unfortunately, documentary records and telephone recordings from 2009 cannot be retrieved due to the lapse of time. The Bank will not be reversing the interest, as the client enjoyed the benefit of the restructure which was subject to the removal of the interest rate.
Regards
Naomi”
The client confirmed that shortly after obtaining the mortgage loan, she was retrenched and requested Standard Bank to restructure the mortgage loan by extending the term from 20 years to 30 years. However, she maintains that at no stage did she agree to an increase in the interest rate to prime.
In her response dated 28 January 2026, Ms Naomi Herman stated that the concessionary rate was removed.
The client raises the following concerns:
Based on this clause, the agreement makes no reference to a “concessionary rate.”