Your bank and other creditors must stick to the rules of early festive debit orders

Thousands of South African consumers woke to the sound of their bank accounts being drained of hard-earned money on Tuesday morning as debit orders were processed. Some received text messages to inform them that this will happen, but not everybody was asked for their permission to do so.

No credit provider is allowed to debit their clients’ accounts around 15 December without their express permission, although the industry, that includes the banks, believe that they have the right to do so. They have to stick to the credit agreement, which states on which day accounts can be debited.

While financial service providers said it is common for debit orders to be submitted in the middle of December, it is not so simple to just do it. When asked if this can be done, the National Credit Regulator’s answer was clear: no.

“If consumers did not agree to the change of the debit order date, as specified in the credit agreement, consumers can lodge a complaint with the National Credit Regulator by completing a complaint form on our website (www.ncr.org.za) and sending it to complaints@ncr.org.za,” an NCR spokesperson said.

“Consumers must agree to the change of debit order days, and obviously there must be money in the consumer’s bank account. Consumers may have agreed because their December salaries are paid on the 15th.”

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Standard Bank explained on its community page that some clients struggle to make debit order payments as most customers are paid earlier than usual during the holiday period.

“Debit orders do not automatically adjust to detect a salary payment, meaning some customers may fall behind on payments.

“Where clients have given the bank a flexible debit mandate on their loan account, the bank will adjust the debit orders dates to their expected salary dates in December. Customers received an SMS either on the day or 1 day before their debit order date.”

Weekly and bi-monthly paying customers on AccessLoan and RCP, as well as those who do not have flexible mandates were not included in the early debits. Early debit orders are deduct from overdraft facilities if funds are available.

According to Standard Bank, the debit order will continue to be tracked and funds collected as they become available if customers have no funds in their accounts on the 15th. No unpaid debit order fee applies for non-payments before the usual debit order due date.

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