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Xolani S

1 reviews | Active since Feb 2014

08 Aug 2025, 12:01

Unfair Cancellation Fee for a Service I Never Signed Up For with Netstar

I am highly disappointed with Netstar's ********* attempt to charge me a cancellation fee of R478.52 for a service I never directly subscribed to.

Dotsure insured me, and as part of that insurance policy, a Netstar tracking device (Dotsure Smart-Box) was installed in my vehicle. I never signed any separate agreement with Netstar, nor was I presented with their terms or cancellation conditions at any point.

Earlier this year, in March, I sold my vehicle and cancelled my insurance policy with Dotsure. I was in good standing with no outstanding balances. This month, Netstar tried to debit my bank account without prior notice. After I reversed the debit and contacted them, they claimed that I owed a cancellation fee due to a 36-month contract, which I never signed or consented to. In my email communications with Netstar, they mentioned sending me an SMS in June to notify me of this, but I do not have this SMS in my phone records.

While I later discovered that the Dotsure policy mentioned 36 months and a requirement to cancel with Netstar within 20 days, nowhere did it mention any cancellation fee, and again, I had no direct contract with Netstar. Netstar was in direct contract/agreement with Dotsure as their third-party service provider. My contract in this matter was with Dotsure.

Netstar is now pursuing a fee based on a contract that I never entered into with them, which I believe is a violation of my consumer rights. I've raised this with their team and will be escalating the matter to the Ombudsman for Short-Term Insurance.

Consumers should be warned about these hidden contractual traps when insurance policies include third-party services like tracking devices. Complete transparency and full disclosure of all fees applicable should always be given at the beginning of the contract/agreement.

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Replies (6)
Netstar
Netstar's reply08 Aug 2025, 12:11
Official
Good day Xolani 

Thank you for reaching out to us. We understand your frustrations and would like to put you at ease, we will investigate this matter to ensure your case is handled to your satisfaction.
A consultant will contact you to further assist you. 

Regards 
Netstar 
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Xolani S's update12 Aug 2025, 13:38
Reviewer Update
Dear Netstar,

Thank you for your response. However, I still need your clarification:

1. Your last HelloPeter reply to me says my cancellation has been processed.
2. Your call centre also told me yesterday that you are escalating to Dotsure to obtain a recording.
3. I also received an SMS yesterday from you stating I have a “payment arrangement” for R478.52, due on 2025/08/30.

All these communications contradict each other.

Please confirm in writing, on this public forum and on my email address, that:

1. The alleged cancellation fee of R478.52 is waived and was never applicable based on the contract I signed with Dotsure, where the fee was never disclosed nor communicated to me at any given point. (Moreover, I was in good standing with Dotsure without any outstanding balance upon cancelling my insurance contract with them.)
2. (Therefore,) I have zero balance with Netstar.
3. No collections will be attempted against me, (for terms I never agreed on or contract I didn't sign with Netstar.)
4. My "account" is marked closed in your system, (since my contract with Dotsure was long cancelled in March.)
5. Any matter between yourselves and Dotsure regarding fees is resolved directly between you two, and not with me.

Until I receive this explicit confirmation in writing, I will regard the matter as unresolved and will proceed with my complaint to the Ombudsman to get a resolution and closure on this matter.

Thank you.

Regards,
Xolani.
Netstar
Netstar's reply12 Aug 2025, 13:47
Official
Good day Xolani, 

Please be advised that your query has been escalated to our internal team.

Should you require any further assistance, please don’t hesitate to reach out to us, we will be happy to assist you. 

Regards, 
Netstar

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Xolani S's update13 Aug 2025, 15:53
Reviewer Update
Dear Netstar,

Please could you provide me with feedback as someone by the name of Tiisetso Mofooka is Tiisetso Mofooka harassing me on the emails, and is failing to provide me with proof of where I signed or agreed to an agreement or contract that mentions a cancellation fee that I'm subjected to.

In his/her emails, he/she is citing that Netstar has "provided all the evidence that [I was] informed about the debit order and declining of contract from the insurance". I looked at the screenshots attached in that email, and they show the SMS that the insurance no longer pays the tracking device and a payment of R478.42.

Firstly, the contract I had for the tracking device was with Dotsure insurance, which I cancelled in March. I never had a contract with Netstar.

Secondly, in that contract I had with Dotsure, there is nowhere where the cancellation fee is mentioned, and I've shared a copy of this insurance contract with Netstar.

Thirdly, my insurance contract (that came with the payment of the tracker) was cancelled in March after selling my car. Now how can I continue paying for a tracking device on (1) the contract (that came with tracking) I cancelled with my insurance, and (2) for a car I sold, and informed my insurance about its sale?

Could Tiisetso stop harassing me in the emails and provide me with proper proof of where I agreed not where I was informed about the R478.52 cancellation fee.

Thank you.

Regards,
Xolani.
XS
Xolani S's update13 Aug 2025, 15:55
Reviewer Update
Resending message above with a correction:

Dear Netstar,

Please could you provide me with feedback as someone by the name of Tiisetso Mofooka is Tiisetso Mofooka harassing me on the emails, and is failing to provide me with proof of where I signed or agreed to an agreement or contract that mentions a cancellation fee that I'm subjected to.

In his/her emails, he/she is citing that Netstar has "provided all the evidence that [I was] informed about the debit order and declining of contract from the insurance". I looked at the screenshots attached in that email, and they show the SMS that the insurance no longer pays the tracking device and a payment of R478.42.

Firstly, the contract I had for the tracking device was with Dotsure insurance, which I cancelled in March. I never had a contract with Netstar.

Secondly, in that contract I had with Dotsure, there is nowhere where the cancellation fee is mentioned, and I've shared a copy of this insurance contract with Netstar.

Thirdly, my insurance contract (that came with the payment of the tracker) was cancelled in March after selling my car. Now how can I continue paying for a tracking device on (1) the contract (that came with tracking) I cancelled with my insurance, and (2) for a car I sold, and informed my insurance about its sale?

Could Tiisetso stop harassing me in the emails and provide me with proper proof of where I agreed nor where I was informed about the R478.52 cancellation fee.

Thank you.

Regards,
Xolani.
Netstar
Netstar's reply13 Aug 2025, 15:56
Official
Good day Xolani, 

Please be advised that your query has been escalated to our internal team.

Should you require any further assistance, please don’t hesitate to reach out to us, we will be happy to assist you. 

Regards, 
Netstar