On Thursday, most of the country’s employed folk left their desks and turned their minds to festive things a day earlier than usual, thanks to the Boks-win-inspired public holiday.
In the days leading up to the big switch-off, a clutch of insurers, regulators and the like fired off their versions of “be careful out there” press releases.
“Think before you tap or swipe,” was the Credit Ombud’s advice. “Our spending in December will set the tone for January 2024, therefore let us change the narrative of having a festive and fun December and a gloomy and worrisome January by changing our spending behaviours.”
The National Credit Regulator had a similar message: “We urge consumers not to blow their bonuses and December salaries while in a festive spending mood. The fact that some consumers receive their December salary earlier than usual and possibly a bonus as well, is not an excuse to overspend.”
Using your bonus — if you are still lucky enough to get one — to reduce your debt is the best, most feel-good present you can give yourself. But yes, that move doesn’t have much of a festive vibe to it, and it’s fighting against a deluge of “spend, spend, spend” messaging.
The banks will tell you that for many people, sage 'don’t spend like a crazy person' advice is in most cases overtaken by the desire to indulge
It’s been many years since I got a bonus, but the year I used mine to pay off all my store and credit card debt — and cancel all my store accounts — was by far its most impactful use.
The banks will tell you that for many people, such sage “don’t spend like a crazy person” advice is in most cases overtaken by the desire to indulge, which is why they do their money grabs — early debit orders — in mid-December, on the assumption that that’s when most people get paid.
This year, Absa ran its vehicle finance debit orders extra early on December 14, given the public holiday on the 15th. Its clients can thank the Boks for that one too. But unless a client’s contract has a clause to this effect — “I agree that the first payment instruction will be issued on X date, and thereafter regularly according to the agreement — except in December in which case the debit may go off on an earlier date” — the credit provider is on very shaky legal ground in deviating from the “normal” debit order date. And is liable to refund any “unmet” fees as a result of a unilateral early debit order.
Naked Insurance saw fit to point out the many typically South African dangers that lurk for those hitting the highways this festive season. “Extreme weather and outages of street lights and robots during load-shedding can increase your risk of having an accident,” their release read.
But that’s not all. “In addition, the quality of South Africa’s roads is deteriorating due to a lack of maintenance, so it’s important to drive carefully, especially at night or in unfamiliar areas, to avoid potholes and other dangers. Keep your insurer’s roadside emergency number on your phone so you can quickly get help if you have an accident or engine trouble. Avoid driving through known crime hotspot areas. If you can, use a safer alternate route, even if it’s a bit longer.”
“Stay away from websites with no depth,” the Financial Sector Conduct Authority (FSCA) warned. “Although criminals [have become] better at defrauding the public, it is worth the effort to test the depth of a website. Click on all the links to see if they lead somewhere — often criminals do not bother to create a second level of fake information to fraudulent websites.” Very true.
“Authorised financial institutions are required to always display their licence numbers. If it is absent, treat the invitation with suspicion.” And don’t stop there: “If an FSP number is displayed, confirm with the FSCA that such an entity or person are correctly licensed.”
There is no shortage of shallow websites peddling clothing and other retail goods, but sadly far too few consumers are savvy enough to realise this. Online transactions in South Africa are governed by the Electronic Communications and Transactions Act (ECTA), which requires retailers to provide consumer-friendly info on their websites.
They must display delivery times and communicate delays to consumers; disclose key terms and conditions, including return and refund time frames and channels; display contact details, including a phone number and physical address; spell out their escalation processes, and a lot more.
But rogue sites — supplying either cheap knock-offs which bear little resemblance to the images on their site, or failing to deliver anything at all — score loads of orders from trusting consumers despite providing little to none of that information.
My advice: given that the ECTA gives us seven days from date of delivery in which to change our minds about what we’ve bought online and send it back for a refund, before making a purchase attempt to engage with the company about their physical address in case you want to send it back.
If you can’t connect or they won’t give you their physical address — or give you one that doesn’t check out on Google Maps — then you’ve dodged a bullet.
And another thing: if you buy a product online and they can’t supply it, the company will usually tell you they’ll credit you.
Sounds good, but please know that you do not have to accept a credit or a voucher, which is the company’s way of ensuring that they lock you in to spend with them. You can demand a refund instead. Same story if you exercise your “cooling off” right to return a product you’ve bought online within seven days — you’re entitled to a refund. As always, knowledge is power.
CONTACT WENDY: E-mail: consumer@knowler.co.za X (Twitter): @wendyknowler Facebook: wendyknowlerconsumer
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