Banks under fire for moving debit orders to coincide with Black Friday

Banks are once again drawing criticism for shifting debit-order dates earlier than agreed, this time not only for December’s early salary runs but even to coincide with Black Friday spending.

Consumer journalist Wendy Knowler says ABSA confirmed it had processed some vehicle-finance debit orders ahead of schedule due to 'increased spending patterns' and rising unpaid debit orders during November.

"They're framing it as customer service. They're saying that collecting earlier payments prevents unnecessary fees and charges on overdue accounts. Also, of course, you get a little black mark on your credit record.

"The banking division of the National Financial Ombudsman says if you've got a certain date and if they do it on another date, it's a breach without your consent. Or, if there's a clause in your debit order mandate that says we can collect earlier or later, if the payment date falls on a public holiday. Be careful, though, some of the clauses say after and then they do it before, so then they're in breach, and there's often a word in there about December.

"Research shows that any missed payment in December generally takes up to two years to make up for by consumers creating balance mismatches with creditors, etc. So, it is serious if you miss, but as someone said, we're not all schoolchildren, don't treat us all like schoolchildren."

Knowler urges consumers to read their contracts, respond to SMS notices, and insist on original debit dates where allowed, adding that any penalties or credit-record issues that arise without consent should be reversed.

To listen to Knowler in conversation with CapeTalk's Lester Kiewit, click below: