If paperwork is missing, you could get money back

PAPERWORK. Paper trail. Fine print. Even in today’s increasingly paperless society, the importance of having all your ducks in a row in case of disputes has not changed.

Whether it is a piece of paper, an e-mail or a cellphone photograph of a document, having a backup of contracts, agreements and receipts will always stand you in good stead. Having such documents on hand when an agreement is contested is useful, particularly when the amounts in question are large.

Many of us are guilty of poor record keeping. What I do not understand is a supplier, in this case a bank, keeping sloppy records. It is not a choice for suppliers but an obligation. Without being able to produce an agreement, whether written or recorded verbally, suppliers would battle to get consumers to comply. No proof of agreement, no pay.

That is how Johannesburg teacher Mark de Buys secured a R20000 refund from Standard Bank. And banks are not in the business of giving money back unless they really, really have to.

In this case they reallydid. And that was not because the bank had charged De Buys between R250 and R800 a month for seven years for an insurance policy he claimed he had never signed, but because it had lost the agreement.

To date, Standard Bank has been unable to find the original loan document that De Buys signed, which, it said, would show he had opted for the insurance.

Of more concern, though, is the bank’s attitude. It told De Buys it would refund the debits “pending management authorisation”, but it later reneged, saying De Buys had been sent premium increase notifications, which served as his opportunity to cancel.

De Buys never received the notices; the bank had sent them to the wrong address. When the bank refused him a refund, he complained to the banking ombudsman and to The Power Report.

“How is it possible for a bank to debit an account without the account holder’s permission, fail to produce a signed agreement and then refuse to refund the account holder?” he said.

De Buys, whose son is still paying off the loan, noticed the debits in April after his wife, who ran the family’s accounts, was admitted to hospital and he took over the job.

“Standard’s response is that I should have noticed them taking money from my account years ago.”

I approached Standard Bank for clarity. Before it responded, the ombudsman contacted De Buys to say the bank would reimburse the money.

“Out of the blue, with no explanation or apology, the bank refunded me over R20000. I wonder how many other people are in the same boat?” said De Buys.

Bank spokesman Ross Linstrom said that after De Buys had reported the matter to the ombudsman, Standard had advised that office of the incorrect debit and reversal.

“Standard Bank should have taken the opportunity to apologise to the customer directly. Regrettably this did not happen,” he said.

Why did Standard wait for the ombudsman to contact it before doing the right thing?

“The bank’s decision to effect a refund was not based on any incorrect action, but rather the inability on our part to locate the original documentation confirming his acceptance,” said Linstrom. “The customer was given the benefit of the doubt.”

He said the bank’s original stance was based on the normal premise that he had accepted the offer of the credit life assurance and had condoned the debit on his account for seven years. “Had a claim been submitted, it would have been met by the insurer due to premiums being paid,” he said.

I asked whether the bank was investigating the breach.

“We do not consider this being a breach, but record-keeping is obviously a high priority for the bank,” said Linstrom.

But what if this had happened to other customers with student loans? “This is an isolated case given the information provided.”

De Buys is not impressed.

“What really got me angry about the whole affair was the tone of the bank’s communication. It basically accused me of not managing my finances carefully enough and implying that I was trying [to pull] a fast one.”

If I had a student loan at Standard Bank and did not have a copy of the agreement, I would be on the phone right now requesting it.

It is worth checking all agreements and contracts again, especially those that offer optional add-on products, and ensuring you are paying only for what you signed. Cellphone companies, for instance, charge separately for extras such as caller ID and itemised billing. If these charges are on your monthly bill and you did not request them, take it up with your service provider and ask for a refund.