When our debit order payment dates fall on a public holiday, the companies we’ve agreed to pay in that way can’t get their money on those days, so they have to make another plan.
This Easter, my medical scheme messaged me to say it would take my substantial premium only on April 2. My bank sent me an SMS saying that as my regular home loan repayment day fell on a public holiday, it would collect it later — on Saturday March 30 — and I was requested to ensure that I had “sufficient funds available”.
Millions of similar notifications would have pinged on credit active South Africans’ cellphones just before the Easter weekend.
Whatever car tracking company Cartrack’s accommodations for the four-day weekend were, something went wrong, resulting in about 500 of its clients being debited their tracking fee twice. In Kevin O’Grady’s case, the first R539 debit order went off his account on March 26, and the second two days later.
I’ve long said that companies, like individuals, shouldn’t be judged by their mistakes, but by how they choose to take responsibility for them.
So in this case, the appropriate response would have been to do whatever it took to get those second debits back into the bank accounts of the affected 500 as soon as possible. But that's not what happened.
“When I called Cartrack to sort it out, they told me that because the debit orders were both for the same amount, the ‘system’ doesn’t allow them to do a refund and they can only reallocate it as next month’s payment,” O’Grady said. “This seems fairly outrageous.”
Totally unacceptable is what I called it. So I approached Cartrack for comment: “Your clients can’t be made to pay for your system’s limitations,” I suggested. “We all know how to make immediate EFTs. So do that in this case, surely?”
Responding, Cartrack put the double debiting, affecting “fewer than 500 customers”, down to “an unfortunate billing issue due to the disruption caused by the long weekend”. (Disruption which other companies succeeded in managing without double-debiting their clients, it should be noted.)
“We have contacted the affected customers and, in accordance with our procedure for an isolated occurrence such as this, we have offered them the choice between receiving a refund or having the amount credited towards their next month's subscription.
“Regrettably, Mr O'Grady’s inquiry was not handled properly. We have taken the appropriate measures to ensure our employee understands the correct procedure ... and we have reached out to Mr O'Grady to offer our sincere apologies for any inconvenience caused. A refund will be promptly issued to his bank account.”
The company’s claim to have contacted affected customers has been called into question by several social media posts by clients who were neither proactively contacted, nor refunded at the time of writing.
“I was debited twice, on March 26 and 27,” said Cartrack client “Naphtaly” on X last weekend. “I called the accounts office twice on the 28th to ask when MY MONEY could be returned to my account as is meant to pay for my insurance on April 1. Every time I’m being told to call them back, instead of them calling me back.
“I don’t know what will happen if my insurance premium debit bounces because Cartrack doesn’t want to return my money.”
When I checked with him at the time of writing, he still hadn’t been refunded.
“I've called them non-stop since March 27 and that they would pay the money by today (April 5) and until now that money hasn't been paid into my account,” he said.
On HelloPeter, “Sfiso N” complained of being debited his R298 tracking fee twice. “When I called the accounts department I was advised to call back on Tuesday because the second payment hadn’t reflected.
“To top it up, I was given an option to have the second amount credited to my next payment but they couldn't give me any assurance [that that will happen],” he said. “How hideous is this?” When “Innocent N” reported his double debit to Cartrack he was unnecessarily made to send them his bank statement, showing the two debited amounts. “I did that, but now they are not responding to me as to what happened and I said it was urgent that they correct this,” he said in his HelloPeter post.
He, too, was concerned that his other debit orders would “bounce” as a result of Cartrack taking double what they were entitled to.
When Thando Mokone of Johannesburg called Cartrack to complain of being debited R199 twice, she was told the company couldn't reverse debit orders of less than R300.
“They told me to do that on my app,” she said. “I did that, but I’m worried it’s going to happen again.”
Asked for further comment and to reveal how many of those affected clients have since been refunded, a week on, Cartrack said: “We have dealt with Ms Mokone and the issue is now resolved. By Monday we will give you a comprehensive response regarding affected customers.
“Currently we are dealing with all affected customers while making sure our staff is adequately trained to deal with this isolated issue.”
Responding to social media posts about the 500 “isolated” illegitimate double debits with an honest explanation and fix-it plan details — instead of variations of the bland “kindly mail us with your details ... we note your concern and would like to assist ...” — would be a good start.
• CONTACT WENDY: E-mail: consumer@knowler.co.za X (Twitter): @wendyknowler Facebook: wendyknowlerconsumer
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