Wesbank rejects claims of overcharging black clients

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Wesbank has responded to allegations that the bank’s vehicle finance application processes include discriminatory pricing practices. This follows reports about a former employee making allegations of how the finance provider used a specific system to overcharge black clients.

This prompted political parties ActionSA and the African Transformation Movement to demand an investigation into the allegations.

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The ATM intensifies its call for a commission of inquiry into the rand manipulation case by the major banks in SA amid new allegations that #Wesbank is overcharging black clients for vehicle loans issued, information validated by Emerald van Zyl, a financial investigator.… pic.twitter.com/Bu9Jrdl9Tv

— African Transformation Movement (@ATMovement_SA) January 23, 2024

Wesbank has refuted allegations of discrimination against customers based on race, gender, or age.

On its social media account X formerly known as Twitter, the bank says all vehicle finance applications are assessed on affordability and the customer’s credit profile in accordance with the National Credit Act.

The former employee alleged that the bank determined the interest rate based on certain risk factors which resulted in black clients being charged up to 18% compared to whites who were charged 10%.

The bank says it collected data for regulatory statistical reporting and not on approval or interest rate calculations.