My Loan with Direct Axis via Sanlam

Summary of Incident

I have various policies and investments with Sanlam, and wish to state early in this article, that the following does not pertain to the service I received from them. I have been extremely satisfied and often pleasantly surprised by Sanlam's quick and professional response to any of my queries.  In 2011 I was sent an email from Sanlam stating that I have been pre-approved for a loan, after calling the number given for more information, I realised I had reached the Direct Axis call centre. The agent was very polite and efficient, and facilitated my loan amount with ease, due to the reference number of my pre-approval I quoted from Sanlam. The allocated funds were deposited into my account within a few days.

Initially this experience with Direct Axis was very positive and I paid my installment promptly and        and consistently ever since as I do with all my accounts. At the close of 2012, the private college I worked for, for the last 4 years closed suddenly due to criminal charges laid against the owner. Most staff now faced a sudden loss of income, unemployment and retrenchment. Due to the nature of the closure and lack of moral fibre of the proprietor of the college, staff had no further income, no benefits, no severance pay, no claim to unemployment and had not been formally retrenched. My options looked bleak, as a single mother I was very reliant on my month to month income.

 While applying frantically for positions, I looked at my projected budget for the next 3 months and decided to act proactively. I worked out my expenses on the assumption that I may not get a job as soon as I may hope, and weighed this amount against my savings, which I now had to live on. I made a list of all my large fixed expenses like my vehicle, insurance, loans, policies and accounts and began calling companies to find out what arrangements could be made to halt or reduce my monthly payments due to my unfortunate circumstances for at least the next 3 months. Many companies had a system in place to accommodate me, Sanlam being the most efficient, other companies offered little assistance due to the fact that I had no formal letter of retrenchment and some allowed me to pay a reduced amount but stated my account will go in arrears.

When I approached Direct Axis in January 2013, I was forwarded to a consultant who deals with special payment arrangements. I asked what my options are regarding a halt in payments for just 3 months. The consultant asked if I wanted to approach their insurers/underwriters to handle this, but I asked if my lack of a formal retrenchment letter will hinder this route. She seemed vague on what my options were and requested I send through a letter of motivation, my appeal to CCMA and some other docs. I forwarded these to her within a day. I had not been contacted by the consultant and began wondering if the request had been received or processed I contacted the call centre again and asked to speak to the consultant by name, but was told she was busy and would call me back, still no response was forthcoming. In February, my loan installment was deducted as usual, eating into my already limited living reserves. I decided rather than waste more airtime on long call centre queues, I would assume the arrangement would probably be implemented in March. Much to my dismay, the March installment was also debited from my account. I then sent a formal letter of complaint via email to the department I initially sent my information to, stating how poor the response has been to my request.

To add insult to injury, a sales representative from Direct Axis contacted me during this time to offer me yet a further loan on my existing one, regardless of my financial position, which basically tells me that nothing on my profile had been flagged to indicate my unemployment status. This shows a poor communication system, within a company that seeks its own fulfillment rather than abide by responsible credit offering laws stated in the new credit act.

Soon after my mail I was contacted telephonically by the consultant in question, her tone was stern and she sounded very put-off by my remarks. She then asked me to refresh her memory about my request, then stated that I chose not to approach their insurers and no other option was open to me. Her tone was most antagonistic and she didn't appear in any way to have my interest at heart. She then proceeded to mention, that the installments were being debited successfully so that indicates I did have funds available. I then mentioned that the funds that was in my account was allocated for my rent, she then condescendingly asked if the loan payment was not considered as important as my rent. I found this level of arrogance and indifference toward my very simple request for assistance and information from such a large company unacceptable. After the consultant spoke to her superior, she then called me back offering a reduced payment, since the crucial period I required help had now passed, I saw no reason in accepting Direct Axis' meager resolve.

How did Direct Axis fail me as the Consumer?

• Withholding information as to my options or failing to explain clearly the most suitable route to take in my specific situation.
• Poor or no feedback to my initial request and submission of documentation.
• Abrupt tone of consultant and responding only after a month of my initial mail.

What can we learn?

Regardless of how negatively you feel about an experience, always consider the lessons you can take away in order to educate yourself as a consumer. I learnt that companies are indeed different, and although my incident may just be an isolated case due to specific circumstances that unfolded, I hope it may help others reading this to become more savvy and diligent when taking out loans. Loan providers like Direct Axis have a very welcoming "Front Door" which are the sales agents, they welcome you in, appear helpful and friendly and you may even be thrilled to how soon those funds appear on your balance. While you are religiously paying your installments, they will continue holding you in high regard, also expect follow ups for more loans as your settlement balance reduces as a reward for your good payment history. However the minute you are unable to pay your installment, it seems as in my case I was sent to special arrangements which could be called the "Back Door" or servants entrance. As I soon realised these consultants are not as friendly or as accommodating  as the "Front Door" people. As they often want to fit people into square boxes, often when your circumstances differ from the norm, they may not be able to find a suitable solution for your specific situation, regardless of your previous excellent payment record with them. 

• Never speak to a call centre agent without a pen and paper in front of you. Write down the date, the full name of agent.
• Agents will state that the call is being recorded, that is for their security, not yours, so write down key points discussed so you can refer to it later if needed.
• When applying for a loan via a call centre, request the conditions of the loan are mailed to you - then actually read it!!!
• Ask about worst case scenarios, like retrenchment, informal retrenchment, being fired or constructive dismissal. Find out what systems are in place to offer you assistance during times of financial strain. 
• Ask about added costs, like admin, agents fees, insurance etc. It is their job and responsibility to answer all your questions and to exhibit knowledge and passion for the product they are touting, Should you feel a sense of evasiveness or lack of knowledge, it would be wise to not to sign up, as it indicates poor staff training and who knows what other shortcomings.
• Write down all follow up's on your product, dates, names etc. If you are running after a company in the early stages, consider what the service delivery would be when you run into snags.
• As a consumer you have a right to decline an agreement within the cooling off period or shop around for a company you feel comfortable with, as often you are in bed with them long term.