Can a bank close your account without consent?

[Flanders]

In 1981, when my GF was born, her grandfather opened a FNB savings account for her and deposited R100 (not exactly peanuts at the time). I guess it was a BOB account, FNB's equivalent of Standard Bank's Club accounts. If my childhood memory serves, they used to earn great interest in the early to late 80's. The account was not touched until about 6 years ago when she went to go see the status on the account for the first time. She provided ID & proof of being the account holder etc. but was simply told that the account had been closed, no records, no nothing, just "sorry". She asked how on Earth this could be and was told that bank charges had drained it. Now, what kind of charges would she have incurred not ever having made any transactions on the account? Does she not have the right to see records of any of this, especially since the bank closed the account without her or her parents' consent?

I was outraged when I heard about this and the only reason I did was because just the other day she went to get a new card for her Standard Bank savings account. This one was also opened when she was born, by her dad. Granted, the account had been dormant (the banks' new favourite buzzword) for about 6 months and when she enquired about it, she was told that her account of 27 years had been closed. (btw it was FICA'd etc. or "FICA compliant") There wasn't a fortune in there but there certainly was the bare minimum to have the account open. Again, no phonecall, no request, no explanation. They just closed it.

Are the banks allowed to do this or does something smell fishy here? In my opinion, she should at least be given her base amount of R50 back and not be met with a rude shrug when asking about it.

 

[The_Unbeliever]

And while we're on this topic, how can a savings account go negative?

And the banks high tariffs and fees just is a total ripoff.

 

[noswal]

how can a savings account go negative?

With a low amount in you savings account the Banks make the monthly maintenance fee more than any interest you get and so it eats away at it.

 

[Dark Agent]

In 1981, when my GF was born, her grandfather opened a FNB savings account for her and deposited R100 (not exactly peanuts at the time). I guess it was a BOB account, FNB's equivalent of Standard Bank's Club accounts. If my childhood memory serves, they used to earn great interest in the early to late 80's. The account was not touched until about 6 years ago when she went to go see the status on the account for the first time. She provided ID & proof of being the account holder etc. but was simply told that the account had been closed, no records, no nothing, just "sorry". She asked how on Earth this could be and was told that bank charges had drained it. Now, what kind of charges would she have incurred not ever having made any transactions on the account? Does she not have the right to see records of any of this, especially since the bank closed the account without her or her parents' consent?

I was outraged when I heard about this and the only reason I did was because just the other day she went to get a new card for her Standard Bank savings account. This one was also opened when she was born, by her dad. Granted, the account had been dormant (the banks' new favourite buzzword) for about 6 months and when she enquired about it, she was told that her account of 27 years had been closed. (btw it was FICA'd etc. or "FICA compliant") There wasn't a fortune in there but there certainly was the bare minimum to have the account open. Again, no phonecall, no request, no explanation. They just closed it.

Are the banks allowed to do this or does something smell fishy here? In my opinion, she should at least be given her base amount of R50 back and not be met with a rude shrug when asking about it.

lol, you suppose to make the account stay active every 6 months.... like finding out balance once in six months

Edit : am not sure if its 6 months or 12 ...

 

[supersunbird]

One of the reasons I'm switching over to Capitec now. If I have R400 in the bank for a month, interest earned will cover the monthly fee of R3.75. My Standard Bank account asks R7 a month account fee and in the million years i've had it has never said anything about interest on any positive balance...

 

[Dark Agent]

One of the reasons I'm switching over to Capitec now. If I have R400 in the bank for a month, interest earned will cover the monthly fee of R3.75. My Standard Bank account asks R7 a month account fee and in the million years i've had it has never said anything about interest on any positive balance...

Looks cheap... Do they offer Visa cards?

 

[supersunbird]

Looks cheap... Do they offer Visa cards?

As in credit cards? Or do their Global One banking account (basically a savings) have a VISA emblem?

They don't do credit cards or petrol cards, and my card has a Meastro emblem. I use the debit card to buy petrol at BPs garages (can stay in car) or Shell (most have paypoints at pumps), screw those that expect me to go into the shop. And since the debit card swipe is free I love swiping any and everywhere and never have cash on me for street beggars or begging coworkers.

I went Virgin Money for my credit card needs, no monthly or yearly fees and low interest rate when in the red and good interest rate when in the black and its internet is on the ABSA backbone...

 

["D"]

Does she not have the right to see records of any of this, especially since the bank closed the account without her or her parents' consent?

If I was her, I would inquire from the Banking Ombudsman about the validity of the actions of both these banks (especially because the T&C's have changed over the years), and then if it is found that they have acted in error, then lodge a complaint with the Ombudsman against the banks.

 

[supersunbird]

If I was her, I would inquire from the Banking Ombudsman about the validity of the actions of both these banks (especially because the T&C's have changed over the years), and then if it is found that they have acted in error, then lodge a complaint with the Ombudsman against the banks.

Ja, give them some grief for once, instead of the other way around...

 

["D"]

One of the reasons I'm switching over to Capitec now. If I have R400 in the bank for a month, interest earned will cover the monthly fee of R3.75

CAPITEC BANK FTW!

I switched over to them from Standardsh1t Bank more than two years ago and have never looked back! Capitec is probably the only bank that offers a real savings account - the other banks are robbing the poor because their "savings" accounts - including their Mzansi accounts - are a joke, an absolute rip-off.

By the way, despite their already low fees, access to Capitec's Internet banking is FREE!
(Oh, except for a digitag purchase, of course.)

VirginMoney Mastercard is also a near-unbeatable credit card deal...

 

[.Froot.]

lol, you suppose to make the account stay active every 6 months.... like finding out balance once in six months

Edit : am not sure if its 6 months or 12 ...

It would have to be a while. I opened an account in January 2008, used it for the first time two weeks ago.

 

[Dark Agent]

As in credit cards? Or do their Global One banking account (basically a savings) have a VISA emblem?

They don't do credit cards or petrol cards, and my card has a Meastro emblem. I use the debit card to buy petrol at BPs garages (can stay in car) or Shell (most have paypoints at pumps), screw those that expect me to go into the shop. And since the debit card swipe is free I love swiping any and everywhere and never have cash on me for street beggars or begging coworkers.

I went Virgin Money for my credit card needs, no monthly or yearly fees and low interest rate when in the red and good interest rate when in the black and its internet is on the ABSA backbone...

online payments

 

[OhGats]

Actually this has happened to somebody before and they went to the newspapers and everybody else, end result was the bank had to refund the money. But, at the end of the day I am afraid the banks are a law unto themselves. I love reading about how South Africans never save, with our banking system its easier to stash your money under your bed, at least it wont attract a service fee. Go to the newspapers I say, and name names.

 

[LazyLion]

I have heard plenty of stories like this. Enough to convince me that Banking Institutions in South Africa are not savings institutions. They are experts at keeping you in debt.

 

[Milano]

Are the banks allowed to do this or does something smell fishy here? In my opinion, she should at least be given her base amount of R50 back and not be met with a rude shrug when asking about it.

Of course they can close the account. Do you honestly believe that one of the largest banks on the continent is trying to steal the measly R100?

Catch a wake up. Try being a better customer. Use common sense. Stop trying to be spoon fed. Staff are human beings too and don't like having their time wasted with such crap.

 

[skoob]

They should have tried to call or send a letter to the client notifying them before cancelling the account. Business etiquette...seems like some companies don't know what that means.

 

[.Froot.]

They should have tried to call or send a letter to the client notifying them before cancelling the account. Business etiquette...seems like some companies don't know what that means.

How often can you put business and etiquette in the same sentence (apart from this one)?

 

[Shake&Bake]

They should have tried to call or send a letter to the client notifying them before cancelling the account. Business etiquette...seems like some companies don't know what that means.

When I worked at ABSA *spits* that was the Modus Operandi. Letters were sent out to clients and phone calls made.
After 2 letters (IIRC) without reply, the account is closed.
The nice thing is that all of it was tracked on the client's account.
I remember this as I had quite a few clients call in and ask about their accounts and could give them detailed explanations as to what happened and why.

On the Off-topic side of things - I'm going into Capitec on Tuesday to open my account. Fsck ABSA

 

[Juggy]

As in credit cards? Or do their Global One banking account (basically a savings) have a VISA emblem?

They don't do credit cards or petrol cards, and my card has a Meastro emblem. I use the debit card to buy petrol at BPs garages (can stay in car) or Shell (most have paypoints at pumps), screw those that expect me to go into the shop. And since the debit card swipe is free I love swiping any and everywhere and never have cash on me for street beggars or begging coworkers.

I went Virgin Money for my credit card needs, no monthly or yearly fees and low interest rate when in the red and good interest rate when in the black and its internet is on the ABSA backbone...

I opened with them this week and am very impressed so far.

A few minor hiccups though.

1. You can change your notification setting in your internet banking, no one told me it had to be enabled at the bank before you can receive notification settings.
2. The first big deposit, over 10K I think, can only be cleared manually. Unfortunately my salary went in on friday and the people that clear these ammounts weren't available to clear the transfer. They say it will happen automatically from now on.
3. My token thing for internet banking broke after 3 days, probably not their fault but frustrating none the less.

On the up side
1. Call center is really very helpfull and friendly and there's not much time to wait after going through there simple menu to when you actually get to speak to someone.
2. Charges are so low I almost feel guilty of theft
3. Free debit card swipes, R1 to draw at a Shoprite/Checkers/Pep/PnP and only R6.50 at another banks ATM.
4. 10% interest on balance under 10K and 11% interest over 10K. That's very good.
5. If for some reason your salary is held up and your debit orders bounce, instead of the R75 most banks charge for returned debit orders Capitec charge you R3.50.....

Now to put things into perspective, I opened the Capitec account in Montague Gardens and walked across the parking area to draw a thousand rand from my ABSA account from an ABSA atm. They charged me R15.50 to make the transaction..... 15 f'ing rand 50 from my own banks atm. That is daylight f'king robbery....

 

[Shake&Bake]

I opened with them this week and am very impressed so far.

A few minor hiccups though.

1. You can change your notification setting in your internet banking, no one told me it had to be enabled at the bank before you can receive notification settings.
2. The first big deposit, over 10K I think, can only be cleared manually. Unfortunately my salary went in on friday and the people that clear these ammounts weren't available to clear the transfer. They say it will happen automatically from now on.
3. My token thing for internet banking broke after 3 days, probably not their fault but frustrating none the less.

On the up side
1. Call center is really very helpfull and friendly and there's not much time to wait after going through there simple menu to when you actually get to speak to someone.
2. Charges are so low I almost feel guilty of theft
3. Free debit card swipes, R1 to draw at a Shoprite/Checkers/Pep/PnP and only R6.50 at another banks ATM.
4. 10% interest on balance under 10K and 11% interest over 10K. That's very good.
5. If for some reason your salary is held up and your debit orders bounce, instead of the R75 most banks charge for returned debit orders Capitec charge you R3.50.....

Now to put things into perspective, I opened the Capitec account in Montague Gardens and walked across the parking area to draw a thousand rand from my ABSA account from an ABSA atm. They charged me R15.50 to make the transaction..... 15 f'ing rand 50 from my own banks atm. That is daylight f'king robbery....

Thanks for that feedback on Capitec.
Makes me more excited about going in and opening my account.
I'll be going to the same branch as it's just up the road from where I work.
And yes, ABSA's fscking charges for getting your own money from their ATM's are fscking crazy!
That's my biggest gripe and one of many reasons why I'm leaving them.