Debit Orders: Why South African Consumers Must Regain Control Over Their Own Accounts

One of the most serious frustrations facing South African consumers today is the debit order system. Banks often refuse to cancel a debit order unless the account holder requests it and the creditor gives permission. This leaves consumers trapped in a cycle where even after cancelling a service, the debit order continues to run—and the bank insists it cannot act without the creditor’s say-so.

This practice is not only unfair, it undermines the basic rights of account holders. The money in a bank account belongs to the consumer, not the creditor, and the consumer should have the unilateral right to stop payments when disputes arise.

The Legal Context

• Consumer Protection Act (CPA): Gives consumers the right to cancel services and protects against unfair practices.

• National Credit Act (NCA): Ensures consumers can dispute unauthorized deductions linked to credit agreements.

• Payments Association of South Africa (PASA): Sets rules for debit orders, including dispute and reversal procedures.

• Recent reforms: Consumers can now dispute debit orders for up to 60 days after they are processed, without needing creditor permission.

These frameworks make it clear: debit orders are a civil matter between the consumer and the creditor. Banks are facilitators, not arbiters. Yet in practice, many banks still act as gatekeepers, siding with creditors and leaving consumers powerless.

Why This Is Exploitation

• Cancelled services still billed: Consumers end up paying for services they no longer use.

• Bank bias: By requiring creditor permission, banks effectively enforce contracts they are not party to.

• Consumer disempowerment: Account holders lose control over their own money.

What Needs to Change

Consumers must demand the right to unilaterally cancel debit orders. If a creditor believes money is still owed, they can pursue the matter through civil channels—courts, arbitration, or negotiation. But banks should not be allowed to hold consumers hostage by refusing to stop payments.

Call to Action

• Know your rights: You can dispute debit orders through your bank’s app, ATM, or branch—without creditor permission.

• Insist on control: Demand written confirmation when you cancel a debit order.

• Escalate if blocked: If your bank refuses, escalate to the Financial Sector Conduct Authority (FSCA).

• Push for reform: Join the call for legislation that guarantees unilateral consumer cancellation rights.

Final thought: The debit order system, as it stands, tilts the balance of power toward creditors and away from consumers. It’s time to restore fairness. South Africans deserve control over their own accounts, and banks must stop acting as enforcers for creditors.

 

Diesel Prices: When Opportunism Becomes Exploitation

South African motorists are facing yet another blow to their wallets—this time from filling stations that have hiked diesel prices to levels that can only be described as opportunistic profiteering. Unlike petrol, diesel prices are not regulated by government, which means retailers can set their own margins. And right now, many are taking full advantage of that loophole.

Yes, it may be legal. But legality does not equal fairness. What we are witnessing is a blatant disregard for consumers, small businesses, and the transport sector that keeps our economy moving. Every unjustified increase in diesel costs ripples outward—raising food prices, transport fares, and the cost of living for ordinary South Africans.

This is not about covering costs. It is about squeezing profits from a crisis. And it is unacceptable.

Why This Matters

• Diesel drives the economy: Trucks, buses, and generators rely on it. Inflated prices hit every household indirectly.

• Unregulated ≠ unlimited: The absence of government control should not be a license to exploit.

• Consumer power counts: Filling stations depend on our business. Without us, their opportunism collapses.

What Can Be Done

The most effective response is collective consumer action. If certain filling stations insist on charging outrageous prices, then consumers must insist on taking their business elsewhere. A boycott—whether formal or informal—sends a clear message: we will not reward exploitation.

Imagine if communities began sharing lists of fair-pricing stations, supporting those who act responsibly, and refusing to fuel at those who abuse the system. That kind of solidarity would force change faster than any regulation.

Final thought: South Africans have faced many challenges, but we’ve always found strength in unity. This is another moment to stand together, to protect our pockets, and to remind businesses that consumers are not passive victims—we are active participants with the power to demand fairness.

Applying for exemption of school Fees

It is any parent’s right to apply for financial assistance regarding school fees for children in Public schools if they qualify in terms of the Schools Act and there are particular guidelines in the act relating to how it is calculated and how parents must go about applying for thi.

Reading posts on Facebook it has become abundantly clear that there are major problems for some parents to apply and to get the requested or required exemptions and I am listing a few of the reasons for this.

Here is my present observations regarding this :

1. Parents do not know how to go about this.

2. Parents do not try to update themselves with the rules and regulations regarding this action in terms of the Schools Act.

3.  Schools and headmasters are required by law to specifically assist parents in this regard which does not happen in most cases.

Just for a recap : Here is an article on the issue of a single parent's right to apply for exemption and the expected outcome thereof : 

https://www.news24.com/News24/sca-ruling-single-parents-dont-need-partners-consent-for-fees-exemptions-20171213

This article will continue................................

The Do's and Don'ts of Debt counseling

 

I have not recently revisited this page but in the past month, I have been inundated by requests for help with people being contacted about old debt that very evidently has been prescribed to entice them to start paying. And there is a definite sudden action from financiers to make use of collection Attorneys threatening people with summonses. This is worrisome and an indication that the economy is making it problematic for a lot more people to survive. Interest rates are skyrocketing and salaries are not

There is also an increase in all sorts of advertisements enticing people to go for Debt counseling. Debt counseling per see is not a swear word but beware of how it is handled and with whom you engage in the process.

As a retired banker I understand the challenges facing debtor clients and for this reason, I have assembled a team of experts to help you in making the right decision. Our first interview is free and we will guide you to enable an eventual debt-free future

Send me an email at brandow@law.co.za or a WhatsApp to 082 222 5002 and I will call you

INABILITY TO PAY SCHOOL FEES AND POSSIBLE LEGAL ACTION RESULTING FROM THIS

 

The issue of parents being summoned and getting default judgments against them for not paying school fees is the issue here.

I am going to guide parents on how to handle the situation. If you follow my lead, there is no way a school will succeed in getting a judgment against you unless you legally do not qualify, and you do not pay school fees.

Background:

1.       FOR THE GOOD OF THE CAUSE MAKE COPIES OF EVERY COMMUNICATION WITH THE SCHOOL AND LET SOMEONE SIGN FOR RECEIVING ANY DOCUMENTATION FROM YOU.    The best method would be to send emails to the school and request delivery and read receipts.

2.    Record all communications with the school no matter with whom you speak regarding the issue of school fees.  This can be used in any legal fight you might end up in. And the law says that you do not have to inform anyone that you are recording them if you are part of the conversation. All cell phones have a recorder as an app available. If you speak to them telephonically record the conversation on another phone. You can file these recordings electronically.  

3.       If you cannot afford to pay school fees to public schools the law provides you with a means to get an exemption if you qualify.

4.       The school administration (and by implication, this is the responsibility of the principal) must supply you with the necessary forms to apply for an exemption. There is no prescribed      pre- approval system.

5.       Qualifications are prescribed in the South African Schools act 84 of 1996 that came  effect    on the 1st of January 1997, and Circular 86/2007 Date:  04 December 2007 

6.       The basic requirement is that the school MUST supply you with the prescribed forms as per    the act whenever you request this.

7.     THE ONLY QUALIFICATION IS YOUR GROSS INCOME and nothing else.

8.     You must be able to PROVE your gross income beyond any doubt.

9.       If you are employed you will be able to supply payslips.

10.   If for any reason the school requires bank statements, and you have nothing to hide give it to them. Be nice.

11.   If the school requires of you to submit an affidavit of any sort and you have nothing to hide supply them with it.

12. If the school requires of you to supply stamped documents from banks that you do not do business with, politely refuse.  This is an illegal requirement, and it cannot influence the approval of your request. (See points 1 and 2 above)

13.   The school CANNOT request details of assets and liabilities or income and expenditure details.  These are illegal requirements, and you can politely deny their requests. (See points 1 & 2 above)

14.    IN ALL COMMUNICATIONS DIRECT YOUR CONTACT TO THE PRINCIPAL.

15.   KEEP CLINICAL RECORD OF ALL YOU DO and all reactions you receive from the    school  AS IF YOU EXPECT THE WORST.

16.   If your request is denied ask for specific reasons in writing. The ONLY REASON can be that you do not qualify in terms of the Act quoted above or that the school might suspect that you are lying about something. They have to give this to you in writing ( see points 1 & 2 above)

17.   If it is approved – good luck!  But if you can afford to pay for something please do so.

 

Now let us get to the worst-case scenario.

 

Summons and Judgments

 

The law requires the school principal in person to address the problem of non-paying parents by contacting them personally about this. If this happens keep a record of the interaction (Points 1 & 2 above)

If you do not apply for an exemption or you do not qualify for an exemption you are legally in default and the school can issue a summons against you, get a judgment against you, and follow every step that the law allows them to get the money from you. This can include a garnishee order against your salary or attachment and selling off your assets.

 

Now it seems that some schools deny an exemption for illegal reasons and then go ahead and summon parents.    If you are one of those and you have your written or recorded records you have a 100% chance of winning any action against you. BUT YOU MUST DEFEND THE ACTION. ( this is easy to do yourself – there are documents in the summons that you can fill in and send back to the attorney- see points 1 &2 Above)  Once a default judgment has been taken against you it is practically impossible to rescind it without using a lawyer which is probably going to cost you more than the original school fees.

 

Although it is your good right to refuse to give a school details of your expenses a court might frown about you paying nearly R900 for DSTV while claiming you cannot afford to pay school fees. I don’t say it will get to that, but I just want to make a point here.

 

 

Here is a blog post I wrote a while back that gives insight into what the LAW SAYS ABOUT EXEMPTION :

 

https://activeconsumers.blogspot.com/2018/03/march-2018-government-schools-and.html

 BANKS AND DEBT BUYERS SKULDUGGERY.................

It seems that banks are again selling old credit card and other debts to unscrupulous debt collectors and clients are receiving phone calls and follow-up letters ( sometimes ) to start the act of claiming from debtors that do not know their rights: 

Here follows a few pointers about this:

1. When you get a phone call from a debt collector NEVER confirm who you are before the caller has answered the following questions: 

a)  Who are you?   Spell your name for me.

b)  On whose behalf are you calling? 

c)  Please supply me with your registration number with the COUNSEL FOR DEBT COLLECTORS

d) Please supply me with your company's registration number with the COUNSEL FOR DEBT              COLLECTORS 

E. Who is it you are looking for?   Give me the initials, surname, and id number. 

F   You can now either answer. That is not me( even if it is you) or you can say "that is me"

G. Next:  You ask: Why did you call me?   

From here on depending on what he answered the best is to ask him for an email address where you can respond to his call.   NEVER TRY TO ENGAGE WITH THEM ON THE PHONE - IT IS THEIR ONLY WEAPON. 

If you do get an email address from the caller thank him/her and kill the call

You can now follow this up with an email confirming the contents of the call and remember the words "' WITHOUT PREJUDICE AND WITH ALL RIGHTS RESERVED" 

TEMPLATE INSERTS TO FOLLOW :

QUERYING OWNERSHIP OF THE DEBT

ASKING FOR FULL DETAILS AND INSISTING ON GETTING SAME

INSISTING ON FULL AND COMPLETE STATEMENT OF ACCOUNT. ( 

INSISTING ON THE PROOF OF PAYMENT THAT MIGHT SUDDENLY APPEAR ON PRESCRIBED DEBTS.

  

Mediation - and Creditors

On the 9th of March 2020, the sub-rule 41A of the Rules of the SA Courts came into effect which basically requires of litigants in any action need to complete and sign their acceptance of or rejection of Mediation before the action can proceed in court.

Apart from the banks ( or anyone claiming debt from anyone) has to send the debtor a notice in terms of S129a of the NCA this is now a new requirement before litigation can start.

This is going to be far-reaching in the bank's( and other creditor's ) actions in courts. The S129 notice was basically the last action from the creditor telling the client that he is in arrears and that he can see a debt counselor which could be a way out of litigation. The whole scene changed recently where this requirement is now going to be a major obstacle in any creditor's legal actions. How this is actually going to work is still not quite clear and a lot of attorneys have written about this on their websites. But with due respect to the legal fraternity, I think they do not know how this is going to be applied. There needs to be an INDEPENDENT Mediator involved. It cannot be a bank employee or a bank's attorney - this will amount to serious bias. So who is going to do this and who is going to appoint the mediator and who is going to pay him/her?