Absa
Initiation Fee charged on 8 year old Home Loan

We applied for a Re-Advance on our existing home loan @ ABSA for R 50, 000. All parties @ ABSA (after asking our home loan account number) confirmed that there are no costs/fees involved.

Yesterday, after we had to request the quotations to be sent to us, we noticed a R 5, 700 Initiation fee on the quotation. Still nobody communicated this to us! Only on questioning it with ABSA, were we told that this is a fee charged on all loans taken before 2007? If we did not notice or ask, it would have conveniently just been added onto our account.

After spending 2.5 hours in ABSA Randridge Mall with Susan and speaking to several people at ABSA, we received several different explanations on why the R 5, 700 is being charged. The staff at ABSA obviuosly also don't know.

At no point were we informed of this fee (if we did not ask). We do not understand why we have to pay an Initiation fee on an account that has been running for 8 years! The communication and transparency on this transaction from ABSA is unacceptable!

We have also been told that if we do not take this loan or further loans, this amount will not be charged in future - and I am supposed to believe and trust ABSA?

Company: Absa
Country: South Africa
City: Home Loans

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