Published: 12 September 2017

A FIERCE clash between Fidelity Life (Fidelity) and hundreds of its customers over contractual differences at the company's South View Park project has escalated to cabinet level amid information a group of stand owners have approached Local Government, Public Works and National Housing Minister Saviour Kasukuwere for intervention.

This comes after hundreds of customers who acquired stands on credit from the listed company teamed up against Fidelity on grounds they felt short-changed.

Fidelity recently threatened to repossess land belonging to thousands of its clients who have defaulted on instalments for stands at its South View Park.

By 2012, Fidelity had indicated growth hinged on success of the Fidelity project, which had capacity to generate $60 million in revenues.

Fidelity Southview Park has 5300 stands along Beatrice Road between Amalinda Road and Cecil Road.

The stands comprise of residential stands averaging 240 square meters, at a cost price of $60 per square meter and sold on two plans that are based on a deposit plus instalments over five years or deposit plus instalments over 10 years.

Letters of demand were given to clients starting early June with a one month window after which repossession could be effected.

"We have noted with great concern that the above amount is outstanding and has now exceeded acceptable trading terms," the letters read.

"Unless payment of the above amount is received by us in full within 30 days of the date of this letter, we will have no alternative but to exercise whatever rights and remedies we have under the law to repossess the property in line with the default and cancellation clause as per agreement of sale."

Stand owners felt the company was taking advantage of them given it has in itself failed to honour its contractual obligations.

Fidelity has been barring customers from occupying their land on grounds council was yet to complete necessary procedures. At the same time, Fidelity is also barring its customers until they update their instalments.

However, stand owners argue they have been unable to catch up with their instalments given that they still pay rentals five years after acquiring stands.

"I write on behalf of other stand buyers, seeking your assistance to be allowed to move in our respective stands. While waiting for Fidelity to finish development and a letter of compliance from council," read part of the letter August 31 letter.

"As prospective residents we found the above mentioned as necessary also to plead with you as we identified only you to come to our rescue during this challenging times," the letter said.

The stand owners have since teamed up and wrote to Minister Kasukuwere.

A group of disgruntled stand owners said they expected to have occupied their land in 2015, but Fidelity is dragging its feet for unclear reasons.

"Fidelity told us that servicing of land was 85 percent complete way back in 2014 and occupation was expected mid 2015 which never happened. We are now in the fourth year without them delivering their promises.

With the worsening economic crisis, we are now finding it very difficult to pay a monthly subscription of up to $200 and moreover monthly rental of $220. I doubt one can afford to pay monthly subscriptions and ignore rent, which clearly explains the ballooning of arrears," a member of the group told the Herald, adding "If servicing wasn't delayed by Fidelity, a few if not none will be unable to make their monthly payments. We feel it is Fidelity that has let us down."
- the herald