Fine for a missed debit order. I was charged a fine of more than R80 for a missed debit order after I properly requested cellc to move the date from 28th to last day of the month. No one actioned this. After all I have been a loyal customer to cellc for 10 years. Is anyone ever have experienced this
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Fine for missed debit order
- Thread starter Ceiling
- Start date
Do you have a reference number from when you requested the change?
Hi Ceiling
Thank you for posting to us.
Kindly email your information to [email protected], we will assist.
^BM
Same happened to me. Except my salary was delayed for some reason and my first debit order failed in 4 years with cellc and got charged a R80 for a failed debit order.
akescpt
Honorary Master
is cellc charging for a failed debit order or the bank?
akescpt
Honorary Master
first i hear of the service provider fining their customer for an unfulfilled debit order. what justification is there for this?
is this the industry standard?
Drifter
Honorary Master
That's blatant thievery.
Kloofvreter
Honorary Master
Asking any institution to change a debit order date effective immediately hardly ever goes right the first time.
akescpt
Honorary Master
yes it seems one fine from the bank is not enough. cellc levies another one. absolute BS.
Arthur
Honorary Master
Why? Through no fault of their own they have to go to additional expenses to get paid. It's only reasonable that they ask the defaulting customer to carry that cost, rather than pass on the cost to all other paying customers.
akescpt
Honorary Master
it must cost them very little. it certainly is not in the region of R80 to process a debit order. must be cents. BS inflated charge just like the banks.
Arthur
Honorary Master
It can't possibly be cents.
Someone has to run the exception report showing the failed debit orders. That person occupies floorspace, has a salary, a desk, a PC with software, network, telephone, stationery, group printer, coffee, etc, etc.
Then there's the person who actions the failed report and contacts the defaulter. That person has floorspace, a salary, a desk, a PC with software, network, apps, telephone, stationery, group printer, tea, parking bay, etc, etc.
Then there's the person who has to re-run the debit job for failed debit orders, and that person has floorspace, a salary, a desk, a PC with software, network, apps, telephone, stationery, group printer, tea, parking bay, etc, etc.
Then there's the ten extra people you have in customer services to field calls from the hundreds/thousands of customers every month who have failed debit orders. These people all have floorspace, a salary, a desk, a PC with software, network, apps, telephone, stationery, group printer, tea, parking bay, etc, etc.
It's a bargain at a mere R80, once you consider all the true costs to a company.
akescpt
Honorary Master
and yet no one else i know of chargers the client for a missed debit order. are you suggesting everybody is just chucking away huge piles of cash.
Arthur
Honorary Master
Either they're chucking cash, or they're recovering in other ways.
The chances are that they don't have a clue what things really cost them. Most people in most companies don't have the foggiest idea of how to do true costings. It's one of the things I specialise in.
akescpt
Honorary Master
im sorry but i suspect its all an automated thing. so all your costs you mentioned doesn't even come into it. when it comes back unfulfilled it just triggers another automated routine that adds R80 onto a customer's bill. no human intervention yet. like the BS 'management fee' on loans. lets just maximize the profits.
Arthur
Honorary Master
If it's automated it probably costs them ever more. Automation isn't free. You can't look at the single transaction cost. You have to consider the cost of the entire sub-system and its ongoing support and maintenance.
And even it runs automagically, just the phones handling the calls from defaulting customers are not. Assume there are 10 000 defaults in any running month, and then looked at the fully-burdened cost of that extra workload. Assume one phone rep handles 250-300 calls a day ...
And even it runs automagically, just the phones handling the calls from defaulting customers are not. Assume there are 10 000 defaults in any running month, and then looked at the fully-burdened cost of that extra workload. Assume one phone rep handles 250-300 calls a day ...
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Venomous
Honorary Master
there are many companies who charge default penalties.
There is even one that I know of that does not charge interest unless an account is in arrears.
So default fee in excess of R100, and interest.... if debit order bounces. Most of their agreements are 18 months+
akescpt
Honorary Master
the biggest expense is the hardware. isn't such capital expenditure written off after a certain time (cant remember the correct term now)? the automated stuff requires minimal intervention if done correctly initially. max profits. give us MOAR!!!
useless without names...
Arthur
Honorary Master
No, it's software and systems infrastructure - and the people cost of installing, maintaining and managing it. Hardware is cheap and easy.