1 reviews | Active since Jun 2013
Why not give us the right to authorise new debit orders
The year is almost 2018, and we still have banks that waste man hours on frequently reversing unauthorised debit orders.
To the best of my knowledge, banks have been dealing with hundred of thousands of complaints from customers who witnessed ********** debit orders on their bank statements.
I have been a victim of this for the past 2 years on several occasions. To my surprise, one of the company's was a large corporate company by the name of Vodacom. Who demanded about R21 000 from me.
From what I have been reading online, most banks are just too arrogant to care. How difficult can it be to get a few software developers to implement a system that allows your "valued" customers to authorise new debit orders via simple technologies such as cell-phone and internet banking. This can also be achieved by physically going to a nearby branch or ATM for those who do not have internet banking.
I am really disappointed, saddened and feeling helpless because with Standard Bank, anyone with my ID number and Bank Account number can deduct any amount from me as they please.
Banks just don't care (i.e http://702.co.za/features/1/money/articles/47)
Thank you for posting your comments.
Your matter was escalated accordingly. We will revert to you as soon as possible.
Kind regards
Clint Chetty
Complaint Resolution Centre
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*** (fax)
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Thank you for posting your comments.
Your matter was escalated accordingly. We will revert to you as soon as possible.
Kind regards
Clint Chetty
Complaint Resolution Centre
***
*** (fax)
***
I refer to your complaint on Hello Peter, regarding unauthorised debit orders, in direct relation to article:
http://702.co.za/features/1/money/articles/47 .
A debit order by nature is an agreement between you and a service provider in which you authorise the company to take money out of your bank account for services provided to you. A debit order arrangement is not an agreement between you and the bank, as the bank is merely facilitating the debit order payment.
In the event of you disputing a debit order the bank will query the validity of the transaction with the service provider that debited your account. That company’s bank will be given 30 days written notice to prove proof of the validity of the transaction after which it will be cancelled if invalid, and the funds manually returned to your account. If the service provider’s sponsoring bank does produce a valid mandate for the transaction, then the debit will not be reversed. The bank is only expected to check for an apparent authorisation, which will normally be the client’s signature on an authorisation to debit form or voice recording.
The bank is not generally expected to act as a court in deciding on disputed signatures, services not provided or any other dispute between the User and the client. Disputes of this nature should be resolved between the client and User.
As stated in the bank’s response the bank has reversed the unauthorised debits that you disputed and the penalty fees charged for debit orders returned unpaid. You are at liberty to dispute the other unauthorised debit orders which you allege have been processed recently. If the bank finds that the debit orders are unauthorised then it will reverse these debits however it will not and cannot cancel the debit order. The cancellation of the debit order needs to be done on the account holder’s instruction to the service provider. Furthermore we attach hereto a copy of the Banking Ombudsman’s bulletin regarding the nature and workings of the debit order process, which is also a helpful piece of information.
Standard Bank, in conjunction with PASA and other Banks, are however in the process of implementing a new process regarding implementation of Debit Orders, it is called DebiCheck.
Refer below for information regarding this:
The Payments Association of South Africa (PASA) has launched a programme to curb Debit Order abuse.
In the year ahead, this year all banks will be introducing DebiCheck (previously known as authenticated collections), a new system designed to help protect customers against ***** and reduce the number of unauthorised debit orders being processed by companies.
DebiCheck is the process whereby customers will confirm that they are in the process of doing business with a company/user and that they agree to the details of the specific Debit Order.
This means that very soon, all customers will have to approve and verify debit orders before they can be processed.
How the system will work?
On approval of the debit order details, the bank will check the payment instruction from the company/user against the approved mandate from our customers to ensure that the debit is within the parameters they agreed to, prior to processing.
The details of the debit order that will need to be confirmed via the Bank's channels include:
What happens next?
DebiCheck will be implemented in a phased approach by all banks. This implies that this service will only apply to selected debit orders initially and existing debit orders will not be affected at this stage. DebiCheck will eventually be app**** to all debit orders. More communication will follow on the progress of the project in months to come.
I trust that we can ensure a valued relationship with you in the future.
Kind regards
Penny Rabe
I refer to your complaint on Hello Peter, regarding unauthorised debit orders, in direct relation to article:
http://702.co.za/features/1/money/articles/47 .
A debit order by nature is an agreement between you and a service provider in which you authorise the company to take money out of your bank account for services provided to you. A debit order arrangement is not an agreement between you and the bank, as the bank is merely facilitating the debit order payment.
In the event of you disputing a debit order the bank will query the validity of the transaction with the service provider that debited your account. That company’s bank will be given 30 days written notice to prove proof of the validity of the transaction after which it will be cancelled if invalid, and the funds manually returned to your account. If the service provider’s sponsoring bank does produce a valid mandate for the transaction, then the debit will not be reversed. The bank is only expected to check for an apparent authorisation, which will normally be the client’s signature on an authorisation to debit form or voice recording.
The bank is not generally expected to act as a court in deciding on disputed signatures, services not provided or any other dispute between the User and the client. Disputes of this nature should be resolved between the client and User.
As stated in the bank’s response the bank has reversed the unauthorised debits that you disputed and the penalty fees charged for debit orders returned unpaid. You are at liberty to dispute the other unauthorised debit orders which you allege have been processed recently. If the bank finds that the debit orders are unauthorised then it will reverse these debits however it will not and cannot cancel the debit order. The cancellation of the debit order needs to be done on the account holder’s instruction to the service provider. Furthermore we attach hereto a copy of the Banking Ombudsman’s bulletin regarding the nature and workings of the debit order process, which is also a helpful piece of information.
Standard Bank, in conjunction with PASA and other Banks, are however in the process of implementing a new process regarding implementation of Debit Orders, it is called DebiCheck.
Refer below for information regarding this:
The Payments Association of South Africa (PASA) has launched a programme to curb Debit Order abuse.
In the year ahead, this year all banks will be introducing DebiCheck (previously known as authenticated collections), a new system designed to help protect customers against ***** and reduce the number of unauthorised debit orders being processed by companies.
DebiCheck is the process whereby customers will confirm that they are in the process of doing business with a company/user and that they agree to the details of the specific Debit Order.
This means that very soon, all customers will have to approve and verify debit orders before they can be processed.
How the system will work?
On approval of the debit order details, the bank will check the payment instruction from the company/user against the approved mandate from our customers to ensure that the debit is within the parameters they agreed to, prior to processing.
The details of the debit order that will need to be confirmed via the Bank's channels include:
What happens next?
DebiCheck will be implemented in a phased approach by all banks. This implies that this service will only apply to selected debit orders initially and existing debit orders will not be affected at this stage. DebiCheck will eventually be app**** to all debit orders. More communication will follow on the progress of the project in months to come.
I trust that we can ensure a valued relationship with you in the future.
Kind regards
Penny Rabe