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.
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