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 email@example.com. Standard Bank customers can contact 0860 101 101 or email CustomerRelations@standardbank.co.za