Fines and “name and shame” list for debit order chancers in South Africa

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Fines and “name and shame” list for debit order chancers in South Africa

The Payments Association of South Africa (PASA) has levied over R3 million in fines on companies which put debit orders on people’s bank accounts without their authorisation.

Speaking to media at the association’s offices in Johannesburg, PASA CEO Walter Volker said the penalty is currently R1,000 per debit order without a proper mandate.
 

ambroseg1

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LOL @ fining the "rogue users" and not holding the BANKS accountable who are paid to look after their clients money.
 

Eric

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R1000?? Really???
And banks should be fined too with 50% fines going to the clients.
 

eehellfire

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LOL @ fining the "rogue users" and not holding the BANKS accountable who are paid to look after their clients money.
They should also be fining clients who dispute valid debit orders (much bigger issue than 'rogue users')
 

Neuk_

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Good!

Good luck with the banks though, they have protected themselves pretty well.
 

moosag

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This is such bull!

Fine the banks! Their systems suck. They need to update it. Its not very hard to get a user's proper authorisation for debit orders.
To have an open ended system that takes in debit order instructions which are then processed on clients accounts without their involvement is absolutely rediculous! Fine the Banks man! WTF its not rocket science!
 

mercurial

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This is such bull!

Fine the banks! Their systems suck. They need to update it. Its not very hard to get a user's proper authorisation for debit orders.
To have an open ended system that takes in debit order instructions which are then processed on clients accounts without their involvement is absolutely rediculous! Fine the Banks man! WTF its not rocket science!
This. And R1000 is a joke. Up it to R50 000, then we'll see drastic changes from those involved.

/thread
 

mercurial

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The law says otherwise, the banks have a legal obligation to process the debit order. They don't have the option not to process them.
That is absolute BS. The system is clearly set up to victimise civilians, to enrich themselves.
 

daveza

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Unfortunately, the penalties PASA levies are not much of a deterrent to these users, as they derive far more benefit than the fines disadvantage them
Then make the penalties the same as thieves would get in court - if you take money from my account without permission you are a thief.

Jail time will sort the scum out.
 

ponder

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Last edited:

Eric

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The law says otherwise, the banks have a legal obligation to process the debit order. They don't have the option not to process them.
They have no such legal obligation lol. They are responsible to ensure that you have agreed to them. We're not talking about the ones you've agreed to here.

What makes you say a bank has a legal obligation to process a debit order for which the vendor has not got your consent?
 

ponder

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They have no such legal obligation lol. They are responsible to ensure that you have agreed to them. We're not talking about the ones you've agreed to here.

What makes you say a bank has a legal obligation to process a debit order for which the vendor has not got your consent?
Ever heard of NAEDO? Non-Authenticated Early Debit Order which falls under the national credit act
 

daveza

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They also believe it is an ethical practice to allow third parties – or other divisions within the bank, such as a vehicle financer or home loans – to access money in clients’ accounts,
provided the business assures the bank that they do have a signed mandate
from their customer.
Banks have a weird sense of ethics.

So why does the bank not receive proof of a signed mandate ?

Let me try go to a bank and assure them I have a signed mandate to do this or that with someone elses account and see if they will just take my word for it.
 

mercurial

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Sorry, [MENTION=6621]daveza[/MENTION], but banks and ethics do not go together in a sentence.
 
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