Wednesday, April 18, 2007

Appeal refused in FNB dispute

By Tarryn Le Chat
18 April 2007


First National Bank will be petitioning the Supreme Court of Appeal (SCA) following its decision to refuse leave to appeal in FNB’s dispute with the National Lotteries Board around the legality of its Million-a-Month Account (MAMA).

The Pretoria High Court denied FNB leave to appeal a December 2006 judgement that the million-a-month account savings product was in contravention of the Lotteries Act.

According to their statement, FNB will petition the SCA as it strongly believes that another court could arrive at a different decision.

The MAMA monthly draws will continue after the petition has been lodged and no funds or deposits are under threat.

The report states that FNB has paid out over R35 million since the launch of MAMA product in January 2005, plus 1.8 million eBucks as part of stimulating a savings culture in South Africa.

1 comment:

Anonymous said...

This type of account is immoral and should be stopped - even if it takes the Lotteries Board to do it.
The problem is that no interest in paid on these deposits, so customers' "savings" are being continually eroded by the full effect of inflation. Why, if in the customer's interest, is this one of FNB most profitable products? Simple. They rob lots of Peters to pay a very few Pauls. 27 people may well have been turned into millionaires, but +- 749000 other people are worse off (than placing money into a 'proper' savings vehicle). It appeals to a ignorant gambling mentality, which is an easy sell in this country.

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