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African Bank Credit Life To Pay Missed Payments Due to Covid-19 Income Loss

African Bank is somewhat infamous for refusing to cooperate with a provision in the National Credit Act that obliges them to allow consumers to choose their own credit life insurance provider for the credit they offer*. Especially has this been the experience of those who enter debt review and turn to specialist insurance providers who can help reduce costs each month on these policies.

‘These policies are well known to have been cash cows for many years for the credit industry’

These policies are well known to have been cash cows for many years for the credit industry with Government slowly tightening the noose and throttling profits over time through regulation. This is because the rates for such cover are relatively high and claims very low. In fact, even recently people still remained unaware of such policies and what they can do for them should they lose their income or become unemployed.

Time To Pay Up

African bank have always lauded their own insurance offering as superior to other replacement options and it will be a pleasure to see these policies now at work.

‘African Bank will be honouring payments to those who have lost income due to Covid-19 and the lockdown’

It has been published that African Bank will be honouring payments to those who have lost income due to Covid-19 and the lockdown. If clients are retrenched, put on short time or forced to take unpaid leave then the insurance can help cover instalments for up to 12 months until the consumers’ situation is remedied.

This will provide African Bank clients (who have been paying their debts and now claim) great relief in dealing with their debt obligations during and after the lockdown. It also means no need to ask for payment holidays etc which can escalate the amount owed due to interest during the months with no payments.

If you need help to find out how to make such a claim then contact the bank directly or ask your local Debt Counsellor for some guidance.

 

 

* African Bank may let consumers do it at the point of first originating the credit but will normally later refuse to swap it out if asked for a variety of reasons they feel are legitimate (though this is disputed by many, including other insurance providers).