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Category Fraud/Crime
SUB CATEGORIES General | 

Talk to the supplier

06 January 2005 Angelo Coppola

Remember that a debit order is a contract between a client and a supplier, giving them the right to withdraw funds from the client’s account in return for goods or services.

Unfortunately, there are companies and individuals out there who abuse the system by making unauthorised debits.

Generally banks only processes these transactions and therefore the client would be the first to know if incorrect deductions are made from a client’s account.

The onus is thus on the client to inform the bank of these abuses so that the bank can withdraw these particular debit order facilities.

Prevention is always better than cure.

* Only sign a debit order if you are sure the company is trustworthy

* Always check your monthly statements to ensure the correct amount gets debited on the correct day

* Contact your supplier immediately if there is a discrepancy. If you still feel that you have been wrongly debited, make sure you register a dispute with your bank

* Your bank will ask your supplier to produce the debit contract to prove that they have authority to debit your account

* If no proper authority can be shown, the transaction must be cancelled and the funds returned to your account. If authority can be shown the transaction stands

Quick Polls

QUESTION

There are countless articles written about South Africa’s poor retirement outcomes. Which of the following would you single out as the biggest contributor to local savers not accumulating enough to buy an adequate and sustainable pension?

ANSWER

Lack of personal accountability
Poor participation in formal retirement funds
Reluctance to seek financial advice early on
SA’s high unemployment rate
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