Guiding consumers since 2009

Pasa to tighten rules on debit orders

By Staff Writer
Nicolette Dirk, finance writer, Justmoney.co.za
 
The Payments Association of South Africa (Pasa) is investigating companies that had more than 5% of debit orders disputed by consumers.

This comes after 100 companies were reportedly blacklisted by the association since last year November last year, after there was an increase in complaints by customers about unauthorised deductions.
 
Last month Justmoney reported on the number of Standard Bank clients who complained about unauthorised debit orders deducted from their accounts in favour of Capital Software.

An amount of R39.70 was deducted from Standard Bank accounts holders by Capital Software. Capital Software claims its deduction was a premium cost for the Ubuntu Funeral Plan. Read more about it here 
 
But other transgressors have evolved their tactics by making false recordings of customers agreeing to debit orders and claiming that they are legitimate as reported last week by Wendy Knowler in her Consumer Watch column.
 
How will Pasa take transgressors to task?
 
Pasa will now be tightening debit order rules and CEO, Walter Volker, said it is an ongoing process with multiple dimensions - of which about five key measures are already in place.

This includes voice mandate rules, unique abbreviated short name, thresholds for disputes and unpaid debit order abuse lists.
He added that Pasa will be investigating companies based on breach of key thresholds and/ or customer disputes.
 
What happens to a company that is blacklisted by Pasa?
 
Recently 100 telemarketers were placed on the "bad user" list of Pasa.
 
According to reports, once a telemarketing company is blacklisted by Pasa, the names, identity numbers and physical addresses of the owners and directors were listed to ensure the banks, which were gatekeepers of the payment system, could recognise them once they reappear.
 
Volker said that they found that on a few occasions the same operation would appear under another name, but with the same directors, or operate from the same premises with uncles or aunts appointed as directors.
 
“Once a company is blacklisted by Pasa, they no longer have any access to the system. The 100 telemarketers placed under the bad user list were submitting debit orders without a valid mandate,” said Volker.
 
For more information you can call Pasa on 011 645 6760 or email pasa@pasa.org.za. Standard Bank customers can contact 0860 101 101 or email CustomerRelations@standardbank.co.za

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions