Gauteng couple in financial distress blames Absa for reckless lending on R3. 2 million home loan
A Gauteng couple took action against Absa bank after alleging reckless lending practices that have led them into a spiralling debt of over R5.1 million.
A Gauteng couple has launched legal action against Absa bank, alleging that reckless lending practices have pushed them into a spiralling debt of over R5.1 million.
Christian Daniel De Klerk and his partner, who have been long-standing customers of the bank, argue that their financial well-being was jeopardised when they accepted a second home loan from Absa without receiving an appropriate affordability assessment.
Initially, the De Klerks secured a R1.9 million home loan from Absa in 2011 and, for nearly a decade, they successfully met their repayment obligations. However, following the collapse of the husband's legal practice in March 2020 due to the pandemic, the couple were granted a temporary three-month payment holiday.
Ironically, during the same month, they said Absa approached them with an offer for a second loan, amounting to R3.2 million. Despite their precarious situation, the couple accepted the offer.
Meanwhile, the husband remained unemployed until June 2024 and the couple faced mounting debt because of missed repayments from 2022.
They maintained that their current income was inadequate to service both the new instalments and the arrears. Nevertheless, they submitted that they could meet the loan obligations under terms similar to those agreed upon in March 2020.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
3 days ago
- The South African
The Daily Lotto results for Wednesday, 4 June 2025
Get Ready for Today's Daily Lotto Draw! Could tonight be your lucky night? Good Luck! 🎉 Dreaming of a big win? The Daily Lotto jackpot is up for grabs, and it's estimated at a thrilling R430 000! The jackpot prize money is guaranteed to be given away even if no one matches all five numbers. All it takes is a ticket to turn your dreams into reality because as the saying goes, you've got to be in it to win it! 📢 Stay tuned! The winning numbers will be updated below as soon as they're drawn at or after 21:15. 0, 0, 0, 0, 0, 0 Draw date: 4 June 2025 Did you miss a draw and wonder if you won? Click here to view past Daily Lotto results and payouts. The Daily Lotto draws occur every day of the week, Monday to Sunday, around 21:30 (SA time). Buy your tickets now at your nearest participating retailer, on our website by visiting national using your computer or mobile site, via the National Lottery Mobile App, or participating banks, namely FNB, ABSA, Nedbank, Standard Bank, Capitec, TymeBank and African Bank otherwise dial 120 7529# for USSD. Winners who win R50 000 and above receive free trauma counselling from professional psychologists and financial advice from accredited financial advisors absolutely free. At the same time, winnings are paid tax-free directly into the winner's accounts. If you are buying tickets from a lottery outlet, they close at 20:30 on the day of a draw. Players must be 18 years old. Monday: Daily Lotto Daily Lotto Tuesday: Daily Lotto + PowerBall and PowerBall Plus Daily Lotto + PowerBall and PowerBall Plus Wednesday: Daily Lotto + Lotto, Lotto Plus 1 and Lotto Plus 2 Daily Lotto + Lotto, Lotto Plus 1 and Lotto Plus 2 Thursday: Daily Lotto Daily Lotto Friday: Daily Lotto + PowerBall and PowerBall Plus Daily Lotto + PowerBall and PowerBall Plus Saturday: Daily Lotto + Lotto, Lotto Plus 1 and Lotto Plus 2 Daily Lotto + Lotto, Lotto Plus 1 and Lotto Plus 2 Sunday: Daily Lotto For more details and to verify the winning numbers, visit the National Lottery website. You must always confirm the official winning numbers on the National Lottery website. We do our best to post the results as accurately as possible, but the National Lottery is the only source you can use to 100% verify the results. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
3 days ago
- IOL News
Gauteng couple in financial distress blames Absa for reckless lending on R3. 2 million home loan
A Gauteng couple took action against Absa bank after alleging reckless lending practices that have led them into a spiralling debt of over R5.1 million. A Gauteng couple has launched legal action against Absa bank, alleging that reckless lending practices have pushed them into a spiralling debt of over R5.1 million. Christian Daniel De Klerk and his partner, who have been long-standing customers of the bank, argue that their financial well-being was jeopardised when they accepted a second home loan from Absa without receiving an appropriate affordability assessment. Initially, the De Klerks secured a R1.9 million home loan from Absa in 2011 and, for nearly a decade, they successfully met their repayment obligations. However, following the collapse of the husband's legal practice in March 2020 due to the pandemic, the couple were granted a temporary three-month payment holiday. Ironically, during the same month, they said Absa approached them with an offer for a second loan, amounting to R3.2 million. Despite their precarious situation, the couple accepted the offer. Meanwhile, the husband remained unemployed until June 2024 and the couple faced mounting debt because of missed repayments from 2022. They maintained that their current income was inadequate to service both the new instalments and the arrears. Nevertheless, they submitted that they could meet the loan obligations under terms similar to those agreed upon in March 2020.
IOL News
4 days ago
- IOL News
Financial distress: Couple accuses Absa of reckless lending after accepting R3. 2 million second home loan
A Gauteng couple took action against Absa bank after alleging reckless lending practices that have led them into a spiralling debt of over R5.1 million. Image: Oupa Mokoena / Independent Newspapers A Gauteng couple took action against Absa bank after alleging reckless lending practices that have led them into a spiralling debt of over R5.1 million. Christian Daniel De Klerk and his partner, long-standing customers of the bank, claim that their financial wellness was compromised when they accepted a second home loan from Absa without being given a suitable affordability assessment. Initially, the De Klerks secured a R1.9 million home loan from Absa in 2011 and, for nearly a decade, they successfully met their repayment obligations. However, following the collapse of the husband's legal practice in March 2020 due to the pandemic, the couple were granted a temporary three-month payment holiday. Ironically, during the same month, they said Absa approached them with an offer for a second loan, amounting to R3.2 million. Despite their precarious situation, the couple accepted the offer. Meanwhile, the husband remained unemployed until June 2024 and the couple faced mounting debt because of missed repayments from 2022. They maintained that their current income was inadequate to service both the new instalments and the arrears. Nevertheless, they submitted that they could meet the loan obligations under terms similar to those agreed upon in March 2020. In seeking respite, the couple brought their case before the National Consumer Tribunal (NCT), voicing their primary grievance against Absa's alleged failure to conduct a proper affordability assessment before approving the second loan. They argued that Absa did not request essential financial documentation such as proof of income, detailed expense records, or even a credit history report—critical assessments that would typically inform responsible lending practices. The couple contended that granting them a loan while the husband was unemployed amounted to reckless lending. In addition, the couple alleged that Absa also failed to provide clear information regarding the loan's terms, conditions, interest rates, and penalties for missed repayments, all of which they argue have contributed to their current financial hardship. As a result of these alleged contraventions, the couple said that they are suffering severe financial hardship, face the risk of foreclosure, and are enduring significant emotional distress, which has adversely affected their quality of life. In the answering affidavit, Absa argued the couple's application was time-barred as more than three years have elapsed since the alleged cause of action arose. Moreover, the bank submitted that the North Gauteng High Court in Pretoria enforced the loan agreement in September 2024 and ordered the couple to pay over R5.1 million including interests and declared the couples' property executable. The bank added that the couple's case was frivolous, vexatious, and constitutes an abuse of the Tribunal's process. In their reply, the couple disputed the assertion that the matter was time-barred. They argue that the cause of action only arose in 2022 when they began defaulting on their home loan repayments. On this basis, they contend that the three-year period should be calculated from 2022, not from 2020 when the second home loan was granted. They also disputed the contention that the high court judgment precludes them from pursuing the complaint before the tribunal. They argue that the issue of reckless lending, which forms the crux of their complaint before the tribunal, and it was not adjudicated by the high court. Looking at matter, the tribunal said by law, the limitation period must be calculated from 2020 March when the alleged reckless credit was extended. Having filed their application for leave to refer in February 2025—almost five years post the alleged reckless lending—the tribunal indicated that they would be barred from considering the complaint, potentially closing the door on their search for justice. As a result, the application was dismissed. [email protected] IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
