‘Race-based pricing’ could lead to FNB clients withholding home loan payments
Expert witness in the high-profile FNB discrimination case, Emerald van Zyl, has warned that the bank’s black clients could decide to stop paying their home loans due to alleged race-based pricing.
Van Zyl was responding to a ruling by the Equality Court in which it dismissed the case relating to allegations of racial discrimination on interest rates by Saambou Bank.
FNB inherited the home loans from Saambou in 2002 and is being accused of charging black homeowners higher interest rates.
"President Cyril Ramaphosa… has been requested to appoint a commission of inquiry into this discrimination with black bond owners. What is going to happen is the black people cannot go to the Equality Court. And if Cyril Ramaphosa do not do these, there is a mass payment action... stop-payment action looming and from black bond holders until such time as the government steps in here."
While Van Zyl has expressed support for the home owners, he is distancing himself from any decision to stop payments.
"I am not supporting, I want to make it very clear, I'm not supporting a stop non-pay stop action. I'm not going to get involved in that."
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He adds that FNB's claim that the case has been staved is "untrue", expressing plans to take the matter to the Constitutional Court.
Meanwhile, FNB has welcomed the judgement by the court.
