Paying heavily for someone else’s error
Mistaken liability for a debt gone wrong wreaked havoc in this entrepreneur’s life
A letter from Nedbank’s attorneys warned Zodwa Mzondo not to ‘slur our client’s name in the media’
WE are taught that our actions have consequences, not all of them pleasant. We also learn that it is best to own up immediately to mistakes. It is called accountability.
When it is lacking — whether in the home, in business, or politics — there is seldom any justice.
What happened to Johannesburg entrepreneur Zodwa Mzondo is shameful.
Everyone she turned to for justice, including a bank, a credit bureau and a handful of lawyers, failed her.
Amid a lot of finger-pointing, apologies and delays, nobody has taken responsibility for their role in turning Mzondo’s world upside down.
The 42-year-old mother of three was building a successful property business when a listing error by credit bureau TransUnion ruined her plans.
Mzondo sold one of her properties in 2008. The buyer defaulted on his bond repayments and Nedbank repossessed the house and blacklisted the borrower in 2010.
Although judgment had been given only against the defaulter, Mzondo and her husband were included in the black- listing. The error was discovered by Mzondo only in September 2011 when she applied for credit and discovered that Nedbank had blacklisted her.
Ironically, she had only ever had one bond with Nedbank — a 20-year mortgage that she settled in full within three months.
In the months that followed her business collapsed, the bank tried to repossess her car and she had to borrow money from friends and loan sharks to pay her bills.
Despite holding three degrees, Mzondo battled to find a job because her credit record put off potential employers.
She had to eventually take a nongovernmental organisation position in Mpumalanga and rent a flat away from her family. She also ended up being treated for depression.
Following the Sunday Times’s intervention, her name was finally cleared a few months ago.
In hindsight, Mzondo’s mistake — an understandable one — had been to approach Nedbank first. She did so through the lawyers who had transferred the property in question.
A month after the firm contacted Nedbank’s attorneys, and despite assurances that they would find the file, no response was forthcoming.
There were repeated attempts and assurances by the bank’s attorneys that they would sort out the matter, but Mzondo remained blacklisted.
In desperation, she approached LegalWise in February 2012 in a bid to force Nedbank to act. According to Mzon- do, the bank acknowledged the error and promised to rectify it.
By September, when there had been no progress, Mzondo contacted the bank’s lawyers. She was told the judgment would be rescinded. Again, nothing happened.
So, in December 2012, Mzondo approached new attorneys, which prompted the bank to send forms to her to complete. By January, nothing had changed.
That is when Mzondo contacted me.
In February, after I requested a thorough investigation, Nedbank responded to say that it had taken a default judgment against Mzondo “in error”.
It said a rescinding of the judgment was under way.
When I raised the issue of compensation for damages suffered by Mzondo, Nedbank changed its story. It said it had never obtained a judgment against Mzondo.
The bank added that the registrar of deeds office had incorrectly listed her and her husband as co-owners of the property and the bank’s attorneys had been obliged to list them as defendants when seeking judgment against the defaulting debtors.
The incorrect listing on TransUnion’s database of a judgment against the couple was not because of information supplied by the bank, Nedbank said.
“Nedbank regrets any distress and inconvenience ... however, the bank is not liable for any wrongdoing.
“In the event that the client should seek to pursue a claim against any third party, the bank will offer its assistance where possible,” said Debi Misura, collections and recoveries head at Nedbank Home Loans.
A letter to Mzondo from the bank’s attorneys said the bank was not liable and warned her not to “slur our client’s name in the media”.
TransUnion, which has since removed the listing, refused to take responsibility, blaming the bank.
When presented with Nedbank’s claim, it blamed its data service provider.
The credit union said its con- tractor — which it declined to name — had taken “reasonable steps” to ensure accuracy in a year in which it had captured 2 800 judgments a day with only 10 staff members.
“Whilst TransUnion and its contractor regret errors, both have taken what is believed to be all reasonable precautions to ensure data accuracy,” said group marketing manager Derek van Wyk.
He said ensuring “absolute accuracy” would result in data capturers becoming hesitant to continue in the business, putting a functional credit environment under threat.
It seems putting Mzondo’s financial security under threat was less problematic.
“What about the huge financial and psychological distress my family has suffered because of this error?” asked Mzondo.
“I’ve piled up huge debt, lost income and self-esteem, and my family life is dysfunctional.”
Mzondo will file a complaint with the credit ombudsman and the National Credit Regulator.
To protect themselves from a similar fate, consumers should take advantage of the free annual credit-record check offered by all major credit bureaus.
If records contain incorrect information, a formal dispute with the bureau — not the creditor that listed you — should immediately be lodged.
By law, the bureau has 20 working days to investigate and resolve it.
If Mzondo had gone this route, instead of waiting in vain for Nedbank to take action, she would have been spared this distress.
Tune in to the Power Breakfast on Power FM on the 98.7 frequency dial every Monday at 8.40am to hear more from Megan. Power FM broadcasts to the Gauteng region and can also be accessed through audiostreaming at powerfm.co.za