Why it's important to make sure your bank has your current, official address

Doing a change of address for official purposes when we move is often one of those tedious admin tasks we 'leave till later'.

Do you know whether your bank has your current address on record as your chosen one?

It's an important issue says consumer journalist Wendy Knowler, as failing to update your 'domicillium address' could lead to harsh consequences.

She cites a recent media release from Banking Services Ombud Reana Steyn, pointing out what would happen in this case if your bank were to send you a formal letter of demand.

While a court can’t give judgment against you if the bank bringing the case can’t prove it sent you a Section 129 notice, the bank’s only obligation is to send this letter to your chosen address by registered post.

They do not have to prove that you received it.

Knowler says that is why so many default judgments are granted against alleged debtors; that is, without their knowledge or participation.

"If this letter of demand went to the address you vacated five years ago, and you didn’t get it; oh well, the court will just grant a default judgment against you."

"Only when the alleged debtors apply for some form of credit or check their credit profiles, do they discover that they have a judgment against them."

Wendy Knowler, Consumer Journalist

The consumer ninja details the case of a woman who was lucky enough to get her repossessed car returned when a judge took into account that a debt counselling notice sent to her bank, reflected her change of address.

Knowler asked the Ombud how important this judgment is, considering the banks’ frequent reliance on the domicillium address, even when they clearly had access to a client’s current address.

Steyn noted that each such case is considered on its own merits.

But be warned that, generally, in South Africa a debt review application itself may not be sufficient to formally change your chosen domicilium address.

And changing that address on contracts or court orders usually requires the explicit consent and agreement from all parties.

"So a debt review application does not automatically change your domicilium address. To do that, you must notify the credit provider in writing to update the relevant legal documents with your new address details."

Wendy Knowler, Consumer Journalist

Knowler sheepishly admits that, checking her own address status, she found that it was three years old.

"I’ve just heeded the advice and informed my own bank about my current address; something I ought to have done three years ago."