African Bank
INSTALLMENTS/ARREARS. WHAT AM I ACTUALLY PAYING?

HELLO PETER

Every month African Bank deducts R3928, 45 for my monthly installments. On inspection of my latest statement I noticed that I have an arrears amount of R2451, 96, total payment due of R1476, 49.

If you add the arrears amount and the total payment due, it adds up to the monthly installment of R3928, 45.
What I can't understand is that I have never skipped an installment, so how can I be in arrears. Also, if they deducted the R3928, 45 every month, should my account not be up to date. How can I be R2451, 96 in arrears every month?

Then they charge you interest which is over R400 per month. I do not understand the arrears amount. No wonder I can't really see a difference in your current balance and the previous month's balance. Every month a huge chunk of my monthly installments go towards an arrears amount, even though I am not in arrears.

I e- mailed them as well and do hope someone might shed some light on this issue.

Thank you