Corporate Tyrants, ****s and Bullies

I have recently been the victim of Classic Corporate tyranny, ****gery and bullying at the hands of First National Bank (FNB) and their branch in the Somerset Mall, Somerset West.

First National Bank have, in conjunction with their controlled agents:

• Failed to exercise their Duty of Care. • Flouted the law of the land by writing terms and conditions contrary to the law. • Allowed perverse incentives for their employees which are prejudicial to customers. • Placed corporate profit above fair business practice. • Employed delaying tactics. • Ignored the facts.

Duty of Care Michael Lewis, in his books “*****’Poker” and “The Big Short”, eloquently describes the gross negligence of the directors of Salamon Brothers and Lehman brothers. The underlying fault in the failure of these banks was that the directors were ******** of, or did not want to know, what was going on in the engine room of their businesses. Cash flow overshadowed all other management considerations. I believe that a similar situation exists in my dealings with FNB. The assertion of dominance over pesky customers like me is administered by a horde of henchmen who protect their supreme masters from any inconvenience, who seize any opportunity for personal enrichment and seek to demean and belittle complainants.

Ignorance of the Law In their voluminous “Terms and Conditions “FNB claim that a “cooling off” period is not acceptable for contracts signed with their bank. This is a contradiction of the Law. My submission to the bank that the marketing of an investment product to me by FNB was subject to the Consumer Protection Act has been ignored by FNB and the Banking Ombudsman (FAIS).

Perverse Incentives So-called FNB “Financial Advisors” are incentivised by receiving an up-front commission of 1,7 percent upon the signing of an investment agreement. Consequently, the customer incurs an immediate loss which has to be recovered over time and which is dependent upon the performance of that investment. The “Advisor” is excluded from any risk in this regard. My personal financial advisor, who is not an employee of FNB and is a man of integrity, regards up-front commissions of this nature as highly *********.

Corporate profit above customer interests From what I understand, FNB financial advisors are limited to selling only, or mostly, FNB-linked investment products to their clients. Surely any transaction of the aforesaid nature is designed to further the financial interests of FNB, not always in the best interests of the customer and is unfair competitive practice.

Delaying tactics My original experience occurred in early March 2019. The matter was elevated to the Financial Ombudsman (FAIS). FNB has clearly been dilatory in responding to the requests of the FAIS ombudsman in order to draw the whole process out. Furthermore, I am currently awaiting a response to my latest e-mail addressed to the financial services tribunal dated 21 November 2019 which reads”

“I have received a long-delayed decision from the FAIS which, in my opinion, is ill-considered and without cognisance of all the facts. I am informed that an application for reconsideration by you must be submitted to you in accordance with Tribunal rules and within certain time limits. Kindly let me have the necessary details of these conditions at your earliest convenience as I did not receive anything from the FAIS in this regard.”

I have received no response to date.

Ignored the facts My contention in this matter is that, in terms of the Consumer Protection Act, I am entitled to a “cooling off period” after being marketed a financial product which was totally inappropriate for my situation, which did not afford me the opportunity to understand or peruse the relevant documentation before signing and which was not adequately explained to me. FNB have telephone records of my original complaint in this regard as well as written e-mails which they and the FAIS have chosen to ignore. The original meeting, which was about an unrelated matter, took place at the FNB branch in Somerset Mall at 11.00 a.m. on 22 February 2019. During the aforesaid meeting it became apparent that the so-called FNB Financial advisor had gained unauthorized access to my personal banking details. He was aware that I had money in a savings account and informed me that he could get a better interest rate for me. He then proceeded to market his investment product to me. During this marketing exercise, I remember being told about the Financial Advisor’s father who had been put on a disability pension after receiving a coronary stent and also about his wife’s BMW. Whilst all this was going on, the advisor was printing reams of documents pertaining to various investment products which were foisted onto me. I have kept these documents - none of which give any indication of fees required by the bank. (Incidentally I was told at the time by the Advisor that Standard Bank Gold fund was an extremely bad investment. How wrong he turned out to be.) I was not given an advance copy of the proposed contract. As part of a meeting in connection with another matter a week later, I was hastily required to sign the unseen investment contract. Based on previous experiences with my bankers and complete trust, I signed the contract in the belief that it had been structured in my best interests as had been the case with previous interactions I had with FNB. I am aware that the FAIS suggested that FNB contact me to try and reach a settlement I this matter. No attempt was made by FNB representatives to contact me. The final response made to me from the FAIS dismissed my complaint and ignored my submissions that I was entitled to a “cooling off period” in terms of the Consumer Protection Act. She merely reproduced the submissions of the respondent in this matter which do not reflect a balanced and considered response to the dispute.

I have lost faith in First National Bank where I have been a loyal customer since 1973. I have never previously experienced the gross exploitation I have recently been subjected to. I will be looking for a banker who I can trust and who will act in the best interest of me, the customer, and not in the best interests of balance sheets and personal commissions.

I anticipate that this submission will be thwarted by the corporate hierarchy of gatekeepers and a layer of management will find my complaint irrelevant. My hope is that customers and potential customers of FNB will read my submission and take note.