My wife, BL Traill has a homeloan with Absa acc no. 8072843503. We decided to sell the property. Gave cancellation noticeto Absa. Unfortunately the notice expired as it took long to sell the property. Therefore Absa can charge an early termination fee. However, this fee is in order to compensate Absa for interest on outstanding loan amount forgone during the difference of the notice to the registration. Therefore, I paid the balance of the loan down substantially inorder to reduce the interest payable during this period and therefore the the early termination charge. Absa still include the full penalty in the early termination charge despite the interest being reduced for this period. This is contrary to the statement on the Absa website on calculation of the early termination charge. We want a breakdown of the calculation of this early termination charge. If it is not in line with Absa's statement of the calculation we intend to approach the banking ombudsman.
"the early termination charge is calculated as follows: the amount of interest that you would have had to pay for three months on the outstanding balance"
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