Termination of Agreements and Closure of Accounts
Both you and Nedbank have the right to terminate your agreement and end your banking relationship.
When can you cancel your agreement with the bank and close your account?
- You can cancel an agreement (eg a home, car or personal loan) and close an account (eg your bank or credit card account) at any time on condition that you have paid back all the money you owe to the bank.
- For certain investment products, cancelling your investment before its maturity date may result in penalty fees.
When can Nedbank end its banking relationship with you?
Before we take a decision to end a client’s banking relationship with us, we strictly adhere to our internal processes, procedures, and governance frameworks, ensuring alignment with good market conduct practices. The following are scenarios within which we as a bank would have sufficient reason to terminate our relationship or agreement with you as a client.
Reputational risk
If a continued banking relationship with you poses a reputational risk to us (ie if having you as a client could damage our brand), we may, after we have given you reasonable notice, end your banking relationship with us. For example, if you are linked to illegal and/or unlawful activities, have been convicted of a crime, or have negative publicity in the media.
Poor conduct or behaviour
We may end our banking relationship with you if your conduct or behaviour does not align with our values. This includes any harsh or inappropriate conduct towards our employees.
Operational reasons
We may also end our banking relationship with you if your requests or interactions make it impractical for us to continue serving you due to the impact on our employees and the time taken away from serving other clients as a result of unreasonable requests.
Legal reasons
We may end our banking relationship with you if your conduct results in a breach of our regulatory obligations.
Fraud or illegality reasons
If your details appear in a fraud database or if we have reasonable grounds to believe that you or a company you are associated with is involved in illegal, unlawful or fraudulent activities, we may also end our banking relationship with you.
What happens if Nedbank ends my banking relationship?
We will give you reasonable notice (usually 30 days for individuals and 60 days for companies, trusts or entities) of our intention to end your banking relationship with us.
You will remain liable for any repayments until your debt is fully settled, at which point the relationship will be considered terminated. You may ask for an extension of the termination date, which will be considered through our governance process.
Can I appeal Nedbank’s decision?
Yes, you can. You can speak to a banker, relationship manager or business manager. Appeals for terminations based on poor conduct and behaviour will not be considered.