Saambou clients to be refunded

Fifty-thousand will be refunded to Saambou clients

Banking group First Rand says that it will refund 50 000 former clients of collapsed bank Saambou some R154 million for interest overcharged on their home loans.

First Rand says its banking arm, First National Bank, will refund those Saambou customers who were charged too much interest on their home loans prior to FNB's acquisition of Saambou's home loan book in 2002.

Saambou collapsed in 2002 after investors lost faith in the bank and withdrew their deposits, sparking a run on the bank.