In March 2011 my overdraft facility was reversed because "my monthly turn over was less than my overdraft facility. measured over 6 months" (my business is seasonal - Prime season, March to September). I was also never informed. After various communications with the bank, I called on Hello Peter around June 2011 and all was rectified. In March 2012 the same story happened again. I left everything (decrease of R1500 per month on overdraft limit). After requesting when it is going to stop (December 2012), they freeze my limit on 1/2 of what it was (R15 000). With me now being in prime season and need some cash flow, I asked for an extra R5000, 00. It was approved within days; I just have to come and sign for it.
At the bank, I was told just to sign on each page and my limit will increase. My eye caught a figure (21 or 22%) and on request they say it is my new interest rate (from an existing plus minus 12%!!!). When I asked for the reason for the difference It was due to my "high risk profile"!!! If I did not pick this up, my interest would have doubled!
Being a SME, almost 10 years with the bank, never being over my limit, I do not understand this.
Be careful just to sign
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