Labourer Arthur Sodinga has been left relieved after Standard Bank agreed to write off the remaining balance on his home loan, ending a years-long dispute over a small RDP house he bought in 2008. Sodinga took out a R48,000 loan to buy the house, with monthly repayments initially set at R660. Despite paying almost R300,000 over 18 years, he still owed more than R55,000 this week, prompting questions about how the debt had grown so much.
The matter drew public attention after Nick Harding, owner of the Bergvliet-based vintage furniture business Restorabilia, took up Sodinga’s case. Harding, who has worked with Sodinga for 35 years, said he had been granted power of attorney over the home loan account in 2016 and had tried for months to resolve the issue with the bank. He said he was shocked to discover that the outstanding balance had risen above the original loan amount, despite years of payments that often exceeded the required instalment.
Harding described Sodinga as a kind, honest and hard-working man who had been caught in what he called an unfair arrangement. He said Sodinga had hoped to retire to his home in the Eastern Cape, but the debt had put those plans in jeopardy. After negotiations with Standard Bank stalled, Harding and his family helped raise awareness of the case on social media, generating hundreds of thousands of online engagements and starting crowdfunding efforts. The matter was also referred to the National Financial Ombud Scheme for investigation.
Standard Bank said the loan followed normal procedures for RDP home purchases and that the original agreement required insurance on the house and life cover for Sodinga and his wife, Irene, to protect the loan in case of death before repayment. The bank said it had tried to assist Sodinga before, including restructuring the loan in 2013, but said he later fell into arrears and missed payments. It said those missed payments, together with penalties, interest, and rising insurance costs, caused the balance to increase. The monthly instalment later rose to R1,572.49, while the insurance portion increased sharply after Sodinga turned 60.
The bank also said that in 2016 the property would have been repossessed had Harding not stepped in and paid R7,700 to cover arrears, legal fees and other costs. However, Harding said he did not realise the contract allowed for annual 10% increases in instalments, along with insurance adjustments, which meant the amount he was paying was no longer enough. Standard Bank said it continued sending statements to Sodinga’s address and disputed Harding’s claim that it had agreed to send all contract changes to him.
After the case became public, Standard Bank said it had reviewed the matter carefully and decided to write off the remaining debt as a gesture of good faith, noting that Sodinga is close to retirement and under pressure from the outstanding balance. The bank said it wanted him to retire with peace of mind and would continue working with Harding to bring the case to a fair and dignified conclusion. The ombud’s investigation remains ongoing.
